Why Future Enterprises share fell 4% after three sessions of gains

Future Enterprises share fell over 4% today after the firm reported a fresh default on interest payment of non-convertible debentures (NCDs). Stock of Future Enterprises lost up to 4.44% to Rs 12.90 against previous close of Rs 13.50 on BSE.

The stock has fallen after 3 days of consecutive gain. The share trades higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages. The share has fallen 35.21% in one year and lost 39.08% since the beginning of this year. In a month, the share is down 34.41%.

Total 4.77 lakh shares changed hands amounting to turnover of Rs 63.61 crore on BSE.

Market cap of the firm fell to Rs 652.48 crore.

Future Enterprises share hits lower circuit of 5% after firm defaults on debt repayment

In a regulatory filing on Tuesday, the company said it has defaulted on interest payment of Rs 16.11 crore for a gross principal amount of Rs 332 crore.

"The company is unable to service its obligations in respect of the interest on non-convertible debentures due on September 27, 2020, since September 27, 2020 was holiday, interest was due on September 28, 2020," said Future Enterprises.

The obligation had a coupon rate of 9.60 per cent per annum and was paid on half-yearly basis on March 27 and September 27 each year. On September 23, the stock of Future Enterprises fell 5% after it defaulted on interest payments of Rs 15.86 crore for its non-convertible debentures.

On September14, 2020, the Kishore Biyani-led Future Group firm said it defaulted on payment of commercial paper of Rs 90 crore. On August 20, it had defaulted on interest payment of non-convertible debentures (NCDs) worth a total of Rs 265 crore. FEL develops, owns and leases retail infrastructure for the Future Group.

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