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Future Retail shares close 4% higher after the firm makes interest payment worth $14 million

The company had previously failed to pay the amount of interest due on July 22 on its 5.6 percent 2025 dollar notes.

August 25, 2020 / 09:40 PM IST

Shares of Future Retail closed with a healthy gain of 4.38 percent at Rs 119.25 on BSE on August 25, a day after the company said it has made an interest payment on 5.60 percent Senior Secured Notes.

With this, the stock broke the losing run of the last two consecutive sessions.

Future Retail averted default by making interest payments worth $14 million to investors on August 24. The company fulfilled the paid interest on its 5.6 percent senior secured USD notes due in 2025.

"We are pleased to inform that the company has made the payment of said interest for the half-year ended for an amount of $14 million on above USD Notes," the company said in a BSE filing.

The company had previously failed to pay the amount of interest due on July 22 on its 5.6 percent 2025 dollar notes. If payment were not made within the grace period, it would have constituted a default, which would have made Future Retail the first company to default since March.

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Read more: Future Retail makes interest payment worth $14 million to investors, averts default

On the technical charts, Rs 111 level is a crucial point for the stock, experts said.

"Based on technical charts, sustaining above Rs 111 levels, it should have the potential to target Rs 136 levels. If Rs 111 is breached then it can go down all the way towards the levels of Rs 100," said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.

"Fresh buying is not advisable in this counter whereas if someone is already invested, they can hold with a stop loss below Rs 114 on a closing basis," he added.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
first published: Aug 25, 2020 03:52 pm
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