The stock of Future Retail Ltd remained locked in the 10 per cent lower circuit through the day on Friday after the Supreme Court ruled in favour e-commerce giant Amazon against the proposed ₹24,713-crore merger deal between Future Retail Limited and Reliance Retail.
Future Retail closed at ₹52.55 on the BSE, down ₹5.80 or 9.94 per cent.
It had opened at ₹62.50 as against the previous close of ₹58.35.
The Supreme Court on Friday ruled in favour of Amazon, holding that the Emergency Award passed by Singapore arbitrator restraining the ₹24,713 merger deal between Future Retail and RIL is enforceable in Indian law.
The Court ruled that the EA's decision could be accepted and enforced as an interim award by an arbitral tribunal under Section 17 of the Arbitration and Conciliation Act.
With the Supreme Court upholding SIAC award, the National Company Law Tribunal (NCLT) will also pause the hearing related to the Future-Reliance deal. The deal can go through only if it is approved by the NCLT.
In addition, the NSE, BSE, and CCI are likely to withdraw their conditional approval for the deal under which Reliance Retail had agreed to acquire Future Retail.
The decision also impacted the stocks of other Future Group companies. Future Enterprises, Future Supply Chain Solutions and Future Lifestyle Fashions were also locked in 10 per cent lower circuits on BSE. Future Consumer stock plunged 8.69 per cent at closing to end at ₹7.25, down ₹0.69 per share.
RIL, meanwhile, tanked 2 per cent. It closed at ₹2089.05, down ₹44.25 or 2.07 per cent.
Also read: SC rules in favour of Amazon in the Future Retail case