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Future Enterprises Limited Shares: Shares of Future Enterprise Limited (FEL) were closed during trading today on Wednesday. That is, no trading has taken place in this share today. Let us tell you that earlier on Tuesday, December 26, the company’s shares fell by 7% and this share closed at 75 paise. However, five years ago the share price was more than Rs 40. By this account 99% of it has been broken so far. Let us tell you that this company is going through the process of bankruptcy, so the trading of the company’s shares has been stopped. Meanwhile, today Wednesday, the resolution professional (RP) of debt-ridden company Future Enterprises Limited has invited Expression of Interest (EOI) from interested companies for some of its assets, including insurance business and textile manufacturing.
What are the details?
FEL, the flagship company of Kishore Biyani-led Future Group, is currently undergoing corporate insolvency resolution process. For this the Designated Solution Professional has invited expressions of interest. For this, the assets of the company are divided into three clusters. Potential buyers can show their interest for different segments. A deadline of 27 February 2024 has been fixed for this.
The first cluster of assets includes FEL’s 25.18 per cent stake in Future General India Life Insurance Company (FGILIC) and 0.5 per cent stake in Future General India Insurance Company (FGIIC). The cluster also includes FEL’s 49.81 per cent stake in Sprint Advisory Services and Shendra Advisory Services. These two special purpose companies previously held 44.88 per cent of the issued and paid up share capital of FGILIC and FGIIC.
In the second cluster, FEL holds 39 per cent stake in two companies – Apollo Design & Apparels and Goldmohr Design & Apparels. The company has investments in both these companies and has entered into a joint venture with National Textile Corporation (NTC) for restructuring and development of these two mills. The third cluster contains the residual unit of the FEL and does not have the properties mentioned in the first and second clusters. It also has two manufacturing units at Tarapur-Palghar in Maharashtra and Mahadevpura-Bengaluru in Karnataka.
For the first cluster, the minimum recoverable net worth of a prospective applicant is Rs. 100 crores, while for the second and third clusters this criterion is Rs. 20 crore has been kept. The Mumbai bench of the National Company Law Tribunal (NCLT) on February 27, 2023 allowed initiation of debt resolution process after accepting the operational creditor’s petition against FEL. According to reports, as of November, Future Enterprises has collected around Rs. 13,500 crore claims have been accepted. FEL is engaged in the business of manufacturing, trading, leasing of assets and logistics services. He is involved in the development of retail infrastructure for the Future Group.