Moneycontrol Bureau
Shares of Future Consumer Enterprise (FCEL) are locked at 10 percent upper circuit on Friday after the company completed acquisition of the Nilgiris convenience store chain in the Southern states of Kerala, Karnataka, Andhra Pradesh and Tamil Nadu.
"The company has pursuant to share purchase agreement(s) executed with the concerned sellers, acquired 97.97 percent equity shares of The Nilgiri Dairy Farm Private Limited (NDFPL) in terms whereof, NDFPL and its subsidiary companies have become subsidiaries of the company," said the company in its filing.
The deal is valued at Rs 200 crore, reports CNBC-TV18 quoting sources.
The Nilgiri Dairy Farm Private Limited is directly, and through its subsidiaries, engaged in the business of licensing franchisee rights to third parties for operating convenience stores under the Nilgiris brand; manufacturing food, grocery, chocolates, dairy and other products; and trading in general merchandise and imported products.
Nilgiris operates a franchisee convenience store chain with 140 stores in key urban centres in four states.
With this acquisition, the company expects to expand geographically by increasing its footprint of convenience stores in south India as presently FCEL's existing footprint is primarily concentrated in north and west India.
"FCEL's acquisition of Nilgiris is another step towards building a robust convenience store network in India," said Kishore Biyani, Group CEO, Future Group.
At 12:02 hours IST, the stock was quoting at Rs 11.42, up Rs 1.03, or 9.91 percent on the BSE. There were pending buy orders of 457,680 shares, with no sellers available.
Posted by Sunil Shankar Matkar
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