Future Market is buzzing

Future Market Networks spurted up almost 6% intra day to Rs.74.15, zooming up from yesterday’s close of Rs.70.10. Volumes are muted but nevertheless, the stock is attracting some attention.

This company is basically engaged in the activity of mall management business and this includes the businesses of Future Retail Markets, Future Trade Markets, Future Infra-logistics Markets and Mixed Use Development. The Future Retail Markets business focuses on retail infrastructure (a network of malls and shopping centers). The Future Trade Markets business focuses on wholesale trade by developing infrastructure backed by supply chain facilities in major cities. Its Future Infra-logistics Markets business focuses on warehouse infrastructure for consumption-led companies. Its Mixed Use Development business focuses real estate sector. The Company is managing approximately one million square foot of retail space and owns various real estate properties across India. Its subsidiaries include Aashirwad Malls, Star Shopping Centres and Suhani Mall.

Two news. One is that the company has signed an MoU with Oman-based Khimji Ramdas LLC to set up a JV to launch fbb stores in West Asia. Both have ploughed in Rs.75 each in this 50:50 JV. This JV will be known as KR Future Fashions LLC and will open four or five fbb stores in Oman and total of 17-18 in the region. This is the company’s foray into the international market, something on the footsteps of Trent.

The second news is that the company has executed a share purchase agreement (SPA) with IL&FS Township and Urban Assets (ITUAL) to acquire 50% equity share capital or 1.5 crore equity shares held by ITUAL in Future Retail Destination (FRDL).

This company, FRDL is set up for development of infra logistic parks across India as a special purpose vehicle company and it will become a wholly owned subsidiary of the company upon completion of the transaction.

The total consideration payable by the company under the SPA is Rs 14 crore. In terms of the SPA, the company has paid an amount of Rs 9 crore and the balance consideration of Rs 5 crore shall be paid on or before 30 September 2018.