The deal would help Amazon tap into the booming retail market in India, as it separately boosts its e-commerce operations, offering everything from electronics to groceries on its Indian website.
Kishore Biyani-led Future Group announced on August 22 that ecommerce retailer Amazon would buy 49 percent stake in its group company Future Coupons.
Amazon will acquire 49 percent stake in Kishore Biyani-owned Future Coupons, a Future Group entity that holds minority stake in Future Retail.
Amazon is set to acquire 8-10 percent stake in the Indian retail chain, reports suggest.
Motilal Oswa is bullish on Future Retail has recommended buy rating on the stock with a target price of Rs 550 in its research report dated August 01, 2019.
Prabhudas Lilladher is bullish on Future Retail has recommended buy rating on the stock with a target price of Rs 512 in its research report dated July 31, 2019.
The total aggregated value of funds raised through issuance of warrants is Rs 1,999.99 crore.
According to a notice filed with CCI, the proposed combination relates to the allotment of 3.96 crore equity warrants of Future Retail to FCL, priced at Rs 505 apiece aggregating to over Rs 2,000 crore.
The company's board in a meeting on Monday "considered and approved the re-appointment" for three years effective May 2, Future Retail said in a BSE filing.
With this tie up, some existing convenience stores of Future Retail may be rebranded as 7-Eleven.
The first 7-Eleven convenience store in India, marking the company's entry into the country, is expected to open in 2019.
Prabhudas Lilladher is bullish on Future Retail has recommended buy rating on the stock with a target price of Rs 576 in its research report dated February 04, 2019.
Total income of the company stood at Rs 5,306.28 crore for the October-December period of the current fiscal.
Net Sales are expected to increase by 11.5 percent Y-o-Y (up 6.2 percent Q-o-Q) to Rs. 5,233.1 crore, according to Prabhudas Lilladher.
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The shares were bought by Edelweiss group, according to the block deal data available with BSE.
Amazon and Future Group are in the final stages of their deal wherein the Jeff Bezos-led company will acquire 9.5 percent stake in FRL as a foreign portfolio investor
The share of organised retailing, or modern format retailing, which consists of hyper markets, super markets and small organised outlets, is only around 10 percent in India
Prabhudas Lilladher is bullish on Future Retail has recommended buy rating on the stock with a target price of Rs 604 in its research report dated November 14, 2018.