Heritage Foods has sold its entire holding representing over 3 percent stake in Kishore Biyani-led Future Retail for around Rs 132 crore in the open market to mainly repay its long-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 the stock exchange in the 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.
Heritage Foods is promoted by the family members of former Andhra Pradesh Chief Minister N Chandrababu Naidu.
The company said sale proceeds shall be mainly utilised for the repayment of term loans of the company.
In November 2016, Future Group had signed a definitive agreement to acquire Hyderabad-based dairy and retails enterprise, Heritage Foods, in an all-stock deal.
As a part of the deal, Heritage Foods got 3.65 percent shareholding in Future Retail through fresh issuance of shares.
In August this year, billionaire Mukesh Ambani's Reliance Industries announced the acquisition of the retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of Rs 24,713 crore.
In October this year, Future Group Founder Kishore Biyani had said that the homegrown retail major lost nearly Rs 7,000 crore revenue in the first three-four months of the COVID-19 pandemic due to the closing of stores, which led him to sell his business to Reliance Industries.