Why Future Retail share price rose 20% today

Future Retail share price surged almost 20% in Wednesday's session following reports that Reliance Industries was in late-stage talks with Kishore Biyani-led Future Group to buy controlling stake in its retail business.

The companies have reportedly reached a common accord regarding certain terms and conditions and a deal is likely to be announced soon. Reliance Industries might acquire Kishore Biyani-controlled Future Group's retail business for Rs 24,000-27,000 crore.

Following the update, the share price of Future Retail opened at Rs 101 and later climbed 19.98% to the intraday high of Rs 119.8 on BSE against the earlier close of Rs 99.85.

Share price of Future Retail has gained after 3 days of consecutive fall. The stock has traded in a wide range of Rs 19.85.

Stock price of Future Retail has jumped 16% in one week and 8.5% in one month. Future Retail shares trade higher than 5, 20, 50 and 100-day but lower than 200-day moving averages. Market capitalisation of the firm stood at Rs 6,495 crore as of today's session.

RIL will reportedly absorb other group companies - the logistics firm Future Supply Chain Solutions and Future Consumer. The deal will make RIL the number one player in brick-and-mortar space in India across categories such as fashion, groceries, and merchandise.

Mukesh Ambani, the Indian billionaire is now on a shopping spree and looking into buyout several local online retailers to help expand product offerings. In a race to build his e-commerce platform and compete against Amazon.com Inc, the 63-year-old tycoon is reportedly also seeking to buy out or purchase stakes in Urban Ladder, Zivame and Netmeds.

This is after Reliance Industries raised capital worth Rs 1,52,056 crore in the midst of a pandemic, by selling over 33% stake in its Jio Platforms unit to partners such as Google and Facebook.

The companies Mukesh Ambani's Reliance Industries plans to buy in days ahead

RIL share gains 1.5% after firm buys majority stake in Netmeds