Mumbai: Shares of Future Retail climbed 12 percent on Monday as the company approved the demerger of retail business and merge it with Bharti Retail.
The stock soared 12.06 percent to settle at Rs 129.65 on BSE after surging 18.4 percent to Rs 137.
On NSE, it climbed 11.84 percent to close the day at Rs 129.40.
The company's market capitalisation went up Rs 542.59 crore to hit Rs 5,034.59 crore.
On the volume front, 18.16 lakh shares were traded at BSE and over 93 lakh shares changed hands at NSE during the day.
Stock of Future Lifestyle Fashions rose 6.08 percent to end at Rs 81.95.
"Kishore Biyani-owned Future Retail surged after its board approved consolidation and realignment of retail operations with Bharti Retail," said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.
In a major consolidation between two home-grown retailers, Kishore Biyani-led Future Group will hive off its retail business to merge it with Bharti Retail.
The board, at its meeting today, approved the demerger, Future Retail said in a filing to BSE.
Furthermore, as part of the deal, retail infrastructure business of Bharti Retail will also be hived off from the company to be merged into Future Retail, it added.
Bharti Retail will issue one equity share of Rs 2 each for every Future Retail share of Rs 2.
On the other hand, Future Retail will issue one fully paid-up equity share of Rs 2 each to Bharti Retail shareholders for every share of Rs 2 held.
In the broader market, the BSE 30-share Sensex ended the day with a gain of 479.28 points at 27,490.59.
