Palguntech Offers Rs 560 Crore to Acquire Future Retail

Future Retail Limited is an India-based company, that is engaged in the business of retailing fashion, household, and consumer products through departmental and neighborhood stores under various formats across the country. The Company operates through the Retail segment. Its retail business includes hypermarkets & supermarkets and lifestyle consumer electronics.

Palguntech offers Rs.560 crore to acquire future retail

Palguntech, a US-based technology consulting company, has proposed to acquire Future Retail (FRL) by offering Rs 560 crore for the entire stake and assets of the troubled firm. In addition, Palguntech has expressed willingness to assume responsibility for all pending cases against FRL promoters, contingent upon discussions with the Committee of Creditors (CoC) and the agreed share allocation by lenders. The company formally communicated this offer to the administrator through a letter. 

Previously, in April 2023, Palguntech submitted a proposal under option I, encompassing FRL and its subsidiaries. Although the exact valuation of FRL’s assets was not specified at that time, the US firm had assured to present the highest bid. Palguntech’s current bid signals its persistent interest in acquiring FRL, pending negotiation outcomes with CoC and lenders regarding the terms and conditions of the acquisition.

FRL Rejected SpaceMantra Bid

Last year, Future Retail’s Committee of Creditors (CoC) rejected SpaceMantra’s bid due to insufficient votes in its favor during the e-voting process, which concluded on September 30. SpaceMantra, specializing in an online marketplace for construction and interior industries, had proposed approximately Rs 550 crore, a sum deemed by many lenders as a fair price closely aligned with independent valuers’ assessed fair value of Rs 450 crore.

Conclusion: Palguntech’s proposal to acquire Future Retail for Rs 560 crore, along with assuming liabilities related to pending cases against FRL promoters, signals its strategic interest in the troubled firm. This offer, contingent upon approval from the Committee of Creditors and lenders, underscores Palguntech’s commitment to potentially revitalizing FRL’s operations amid ongoing resolution proceedings.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.