Why Future Enterprises share fell 20% in five sessions

Share price of Future Enterprises fell 5% today after the firm CARE Ratings downgraded the credit rating of non-convertible debenture issue of the firm to 'D' from 'C'. Future Enterprises share hit lower circuit of 5% to Rs 11.20 against previous close of Rs 11.75 on BSE. The stock has lost 20.21% in the last five days.

Future Enterprises share trades lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has fallen 47.61% in one year and lost 47.13% since the beginning of this year.

In a month, the share is down 34.29%. Total 5.56 lakh shares changed hands amounting to turnover of Rs 62.81 crore on BSE. Market cap of the firm fell to Rs 568.45 crore.

The company in a communication to BSE said CARE Ratings has removed it from 'credit watch with developing implications', on account of the default in the payment of NCD interest.

Of late, the Kishore  Biyani-led firm has been hit a series of defaults on interest payment for securities related to various tenures.

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On September 23, Future Enterprises share hit lower circuit of 5% after the firm defaulted on interest payments of Rs 15.86 crore for its non-convertible debentures.

The company said it defaulted on interest payment of Rs 15.86 crore for a gross principal amount of Rs 327 crore.

"The Company is unable to service its obligations in respect of the interest on Non-Convertible Debentures due on September 20, 2020, since September 20, 2020 was holiday, interest was due on September 21, 2020," the firm said.

The obligation had a coupon rate of 9.60 per cent per annum and was paid on half-yearly basis on March 20 and September 20 each year.

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Last week too, the Kishore Biyani-led Future Group firm said it defaulted on payment of commercial paper of Rs 90 crore. On August 20, the firm defaulted on interest payment of non-convertible debentures (NCDs) worth a total of Rs 265 crore.

Future Enterprises develops, owns and leases retail infrastructure for the Future Group.

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By Aseem Thapliyal