NEW DELHI: Heritage Foods, on Wednesday, sold its holding of about 3 per cent in Future Retail. The company said that it had sold the entire holding amounting to Rs 132 crore in the open market.
The company, which is owned by the family members of former Andhra Pradesh Chief Minister N Chandrababu Naidu, said sale proceeds shall be mainly utilised for the repayment of its term loans.
“The company has disposed off its entire holdings/investment of 1,78,47,420 equity shares held in Future Retail. These shares were sold through stock exchange in open market in various tranches and the net amount of Rs 131.94 crore was received by the company,” Heritage Foods said in a regulatory filing. Shares of Heritage Foods advanced 16 per cent to Rs 325 on the BSE after the announcement.
In 2016, the Kishore Biyani-led Future Retail Ltd had inked a strategic deal to consolidate the retail and allied businesses of Heritage Foods through an equity transaction. Heritage Foods, at that time had received a 3.65 per cent equity in Future Retail via freshly-issued shares worth Rs 295 crore in FRL.
Heritage Foods’ retail business includes the popular Heritage Fresh chain of 124 stores in the three key southern cities of Hyderabad, Bengaluru and Chennai. The stores sell a range of household items, fast-moving consumer goods, staples and fresh fruits and vegetables.