Intrinsic Value

Stock has not been able to generate better return on equity than bank FD

Returns vs FD rates

Stock doesn't offer attractive dividend returns

Dividend Returns

Good time to consider, as stock is not in overbought zone

Entry Point

Stock not in ASM/GSM lists and not a lot of promoter holding is pledged

No Red Flags

Ravindra Dhariwal, one of Future Retails three independent directors, described Amazons offer as a “smokescreen”, and said it was untenable as “all the diligence has been done to death—by Reliance Retail—and by the banks…”.

Future Retail’s independent directors to turn down Amazon’s request for expedited due diligence

Amazon had approached the independent directors of Future Retail on Jan. 19, reiterating its intent to assist the company: PTI

Amazon Says Samara Capital Ready to Invest in Future Retail: PTI

Samara Capital ready to invest Rs. 7,000 cr to avert loan default, Amazon tells Future Retail

Amazon said the transaction envisaged in the Samara term sheet would ensure availability of funds in FRL at the earliest, through an asset sale and an equity infusion.

Samara Capital interested in buying Future Retail assets for Rs 7,000 cr: Amazon

Amazon has asked Future Retail to give all financial details to Samara Capital to avoid default

Samara Capital offer for Future is similar to Reliance deal: Amazon

Amazon has written to independent directors of Future Retail Ltd, confirming that Samara Capital ‘remains interested and committed’ to invest Rs 7,000 crore for buying all retail assets of company

Amazon confirms Samara Cap to invest Rs 7,000 cr in FRL to acquire assets

In June 2020, Samara Capital had signed a non-binding term sheet to acquire FRLs businesses including Big Bazaar, Easyday and Heritage among other chains for Rs 7,000 crore.

Give financial details to Samara Capital if you want funds to avoid default, Amazon tells Future Retail

The Kishore Biyani-promoted company, which had raised $500 million in an overseas bond issue offering 5.6% returns in January 2020, has one-month grace period till February 22 to make the semi-annual coupon payment.

Future Retail may miss $14 million coupon payment on bonds

Take note of Amazon’s fresh offer to support FRL

Future Retail’s independent directors ask Amazon to give ₹3,500-crore immediately

“Can you clear Rs 3,500-crore debt due to lenders by Jan. 24?” Future Retail’s independent directors ask Amazon.

Future Retail To Amazon: Show Me The Money (And FDI Compliance)

Future Retail Asks Amazon to Confirm Willingness to Fund Rs 3,500 Refund to Lenders; FRL will use such funds in order to repay FRL’s existing lenders, Future retail Limited told Amazon in a letter. Get latest news updates on news18.com

Future Retail Asks Amazon to Confirm Willingness to Fund Rs 3,500cr to Repay Lenders

Future Retail Limited is a retail company that is engaged in multi-brand retail trade.

Future Retail Ltd

Future Retail Ltd

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

Returns vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's return on equity is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Future Retail’s independent directors to turn down Amazon’s request for expedited due diligence

Amazon Says Samara Capital Ready to Invest in Future Retail: PTI

Samara Capital ready to invest Rs. 7,000 cr to avert loan default, Amazon tells Future Retail

Samara Capital interested in buying Future Retail assets for Rs 7,000 cr: Amazon

Samara Capital offer for Future is similar to Reliance deal: Amazon

Amazon confirms Samara Cap to invest Rs 7,000 cr in FRL to acquire assets

Give financial details to Samara Capital if you want funds to avoid default, Amazon tells Future Retail

Future Retail may miss $14 million coupon payment on bonds

Future Retail’s independent directors ask Amazon to give ₹3,500-crore immediately

Future Retail To Amazon: Show Me The Money (And FDI Compliance)

Future Retail Ltd

Intrinsic ValueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

Returns vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's return on equity is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry PointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Future Retail’s independent directors to turn down Amazon’s request for expedited due diligence

Amazon Says Samara Capital Ready to Invest in Future Retail: PTI

Samara Capital ready to invest Rs. 7,000 cr to avert loan default, Amazon tells Future Retail

Samara Capital interested in buying Future Retail assets for Rs 7,000 cr: Amazon

Samara Capital offer for Future is similar to Reliance deal: Amazon

Amazon confirms Samara Cap to invest Rs 7,000 cr in FRL to acquire assets

Give financial details to Samara Capital if you want funds to avoid default, Amazon tells Future Retail

Future Retail may miss $14 million coupon payment on bonds

Future Retail’s independent directors ask Amazon to give ₹3,500-crore immediately

Future Retail To Amazon: Show Me The Money (And FDI Compliance)

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

Returns vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's return on equity is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock