The share price of Future Retail jumped over 9 percent in the early trade on Tuesday after the company averted a default by making an interest payment of $14 million or about Rs 105 crore to its coupon holders for $500 million senior secured notes.

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The stock rose as much as 9.23 percent to Rs 124.8 apiece on the BSE. The stock, however, soon pared gains, trading 5.12 percent higher at Rs 120.10 per share on the BSE, at 9:40 am.

In a regulatory filing on Monday, the Kishore Biyani-led firm informed, “In furtherance to our letter dated 22nd July, 2020, wherein we had informed about the grace period of 30 days for making payment of interest on above USD Notes. Today, we are pleased to inform that the Company has made the payment of said interest for the half year ended for an amount of $14 million on above USD Notes."

The company was originally due to make the interest payment on its 5.60 percent 2025 dollar notes on July 22 which it missed.

The retail giant has found itself in troubled waters since the nationwide lockdown started hurting its businesses, worsening its already strained financial position.

Future Group had a consolidated debt of Rs 12,778 crore as of September 2019, as per the company’s public records. Its flagship company Future Retail had a gross debt of Rs 2,657 crore.

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