Future Retail (FRL), a leading retailer, announced Monday the company's board approved the consolidation and realignment of retail operations of the company with Bharti Retail (BRL). The proposed consolidation and realignment would be carried out vide a composite scheme of arrangement between FRL and BRL, the company said.

The scheme would involve re-organization of paid-up share capital of BRL; demerger of retail undertaking of FRL into BRL (post demerger, this company have retail operating business) and demerger of retail infrastructure undertaking of BRL into FRL (post demerger, this company will have business of retail infrastructure and investment).

The paid up share capital of BRL will be reduced to 43.48 million equity shares of face value of Rs 2 each fully paid up.

As a part of deal, BRL will issue 1 share of Rs 2 each to the FRL shareholders. Meanwhile, FRL will issue 1 share of Rs 2 each to BRL shareholders.

Shares of FRL gained Rs 15.55, or 13.44%, to trade at Rs 131.25. The total volume of shares traded was 1,571,818 at the BSE (2.53 p.m., Monday).