Future Retail board approves demerger of home retail business

Scheme subject to regulatory approvals

by RASHMI RAWAT

The Board of Directors of Future Retail (FRL) approved to consolidate the company’s online and offline home retail businesses into a single entity. According to a NSE filing by the company on 20 April 2017, its home retail business operated through HomeTown stores and its e-commerce store FabFurnish.com will be demerged into a company called Praxis Home Retail (PHRPL). PHRPL will be listed prior to the completion of the scheme. The scheme is subject to approval from National Company Law Tribunal, stock exchanges and SEBI.

As consideration for the demerger, for every 20 shares of face value Rs.2 of FRL, the shareholders will receive one share of face value Rs.5 of PHRPL. There would be no change in the shareholding pattern of Future Retail post the demerger. According to the company, the purpose of the demerger is to spin off its specialty business and focus on its large and small format pure retail businesses. It would also result in greater visibility of performance of the offline and online home retail businesses.

References
1. http://www.livemint.com/Industry/yKtdc6E2kqpgDOR7zmK1bM/Future-Retail-to-demerge-home-retail-business.html
CMIE STATISTICS
Unemployment Rate
Per cent
4.0 +0.0
Consumer Sentiments Index
Base September-December 2015
99.3 +0.2
Consumer Expectations Index
Base September-December 2015
101.5 0.0
Current Economic Conditions Index
Base September-December 2015
96.0 +0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 16 Sep 16 Dec 16 Mar 17
New projects 1.45 2.35 1.42 2.80
Completed projects 0.90 2.19 0.87 1.38
Stalled projects 1.40 0.64 1.01 0.32
Revived projects 0.43 0.51 0.17 0.62
Implementation stalled projects 0.50 0.57 0.80 0.26
Updated on: 26 Apr 2017 12:20PM
Quarterly Financials of Listed Companies
(% change) Mar 16 Jun 16 Sep 16 Dec 16
All listed Companies
 Income -0.1 -0.9 2.1 6.4
 Expenses 0.9 -0.3 1.9 6.7
 Net profit -29.1 -4.1 14.7 36.5
 PAT margin (%) 4.9 6.9 6.9 6.0
 Count of Cos. 4,516 4,487 4,471 4,433
Non-financial Companies
 Income -2.1 -2.5 0.6 6.1
 Expenses -3.9 -2.9 -0.2 7.6
 Net profit 5.0 9.6 26.8 20.6
 PAT margin (%) 6.2 7.4 6.9 6.1
 Net fixed assets 4.0 -9.2
 Current assets 3.2 8.1
 Current liabilities 10.7 11.6
 Borrowings 6.9 3.1
 Reserves & surplus 7.8 8.4
 Count of Cos. 3,518 3,497 3,482 3,459
Numbers are net of P&E
Updated on: 26 Apr 2017 12:29PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.0 9.6 4.9 0.8
 Expenses 12.2 9.5 4.9 1.0
 Net profit 1.2 -3.7 2.2 -13.7
 PAT margin (%) 3.6 3.2 3.2 3.1
 Assets 14.1 12.3 9.1 8.2
 Net worth 9.5 9.6 8.5 7.2
 RONW (%) 6.8 6.0 6.0 5.4
 Count of Cos. 23,921 21,271 20,226 16,111
Non-financial Companies
 Income 11.3 9.3 4.0 -0.3
 Expenses 11.6 8.9 4.1 -1.0
 Net profit -8.5 -5.0 -4.1 11.3
 PAT margin (%) 2.4 2.1 2.1 2.8
 Net fixed assets 12.8 11.5 12.9 12.4
 Net worth 7.7 8.5 7.0 6.5
 RONW (%) 5.5 4.8 4.8 5.7
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.1 1.9 1.9 2.1
 Net working capital cycle (days) 72 69 68 68
 Count of Cos. 18,454 16,748 15,978 13,008
Numbers are net of P&E
Updated on: 21 Apr 2017 9:39AM

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