Shares of Future Retail Ltd. surged after its board approved a plan to demerge its home retail business, operated through HomeTown stores, into a seperate entity called Praxis Home Retail Pvt. Ltd.
The demerger will be carried out as a scheme of arrangement between Future Retail and Bluerock eServices Private Ltd., the company said in a filing to the stock exchanges. Bluerock eServices is an unlisted home furnishing subsidy of Future Enterprises Ltd. Future Retail will look to list Praxis Home after the demerger.
Praxis Home will issue one share to Future Retail holders for every 20 shares held.
Shares of the company rose as much as 7 percent intraday to Rs 313 – their highest level on record.