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Future Group news: This company got out of the hands of debt-ridden Kishore Biyani! Learn about the case in detail

New Delhi: Debt-ridden Future Group has sold its 25 per cent stake in Future Generali India Insurance Company Limited (FGIICL). Future Enterprises Limited (FEL) on Thursday said it has sold its stake in FGIICL to its partner Generali for Rs 1,266.07 crore. After the completion of this transaction, FEL’s stake in the company, directly and indirectly, will be reduced to only 24.91 per cent. Kishore Biyani, who is called the retail king, has a huge debt on the company FEL. Last month, it defaulted on loan repayment of Rs 2,911.51 crore. The company has a total short term and long term debt of Rs 6,778.29 crore.

Future Enterprises Ltd on Thursday sold 25 per cent stake in Future Generali India Insurance Co Ltd after obtaining necessary approvals from the government and key regulators, the stock exchange said. The transaction was completed on May 5, 2022, after getting approvals from the government and regulatory authorities. The company has sold 25 per cent shares for Rs 1,266.07 crore. FEL is part of the Future Group. Future Group operates Big Bazaar and retail chains like Easyday and Heritage.

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Debt on Future Group
Biyani’s Future Group, known as the retail king, is deeply in debt. Biyani made a deal with Reliance Industries in 2020 to sell his retail business. But America’s giant e-commerce company Amazon had raised objections to this. A legal battle has been going on between Future and Amazon since then. Recently, Reliance canceled the deal with Future as it was not approved by the bankers.

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But before that Reliance had captured more than 900 Big Bazaar stores. This has resulted in a significant drop in futures cash flow. He doesn’t have enough goods or money to operate the rest of the stores, pay employees or vendors. Banks led by Bank of India have decided to drag Future Retail to the National Company Law Tribunal (NCLT) to recover their dues. This can add to the difficulties of the company.

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