Future Retail Feels Financial Momentum

Indian department store chain Future Retail Ltd.’s shares and dollar bonds started the week on an upswing Monday (Dec. 20) when the Competition Commission of India said purchase plans by Reliance Industries Ltd. don’t violate a 2019 agreement between Amazon and Future, Bloomberg reported.

Future’s shares rose by the maximum permissible 20% to 57.5 rupees in Mumbai on Monday, the report says, the largest jump in share price since August 2020. Meanwhile, Future’s 2025 dollar bonds jumped 4.2 cents on the dollar to 57.9 cents, its biggest daily gain since February, according to Bloomberg.

Amazon had argued that billionaire Mukesh Ambani’s move to buy Future violates the 2019 agreement between the companies. Amazon could challenge the commission’s decision in court.

Related: More Retail IPO Hints at Amazon’s India Omnichannel Plans

Last week, Bloomberg reported India-based grocery firm More Retail, which is backed in part by Amazon, may go public in its native land by the middle of next year with a valuation of $5 billion. More Retail plans to raise $500 million through the sale of new shares.

Witzig Advisory Services Pvt. acquired More Retail in 2019 from Aditya Birla Group, and Amazon bought 49% of Witzig about a month ago. More Retail has 600 retail stores across the U.S., including supermarkets and big box-style hypermarkets.

Also Read: RBI Supports a Full Ban on Cryptocurrencies in India

Meanwhile, the Reserve Bank of India is in favor of a total ban on cryptocurrencies, making a presentation to its board recently in which it said it had “serious concerns” as to the stability and exchange management of cryptos.

The bank also highlighted the difficulties of putting regulations on intangible currencies that did not even originate in the country.

The proposed Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, would involve a creation of an official digital currency which would be issued by the RBI, and private cryptocurrencies would be banned, with exceptions for ways to promote the basic tech of crypto and its uses.