Yesterday, Trent hit a record high at Rs.430.60 and today too it rose to a new high at Rs.448.60, with an over 2 times surge in volume.
The stock is soaring as the company is seeking shareholders approval to allot up to 2.46 crore equity shares to Tata Sons for cash. This is expected to bring in around Rs.950 crore.
Last week, the Board approved raising up to Rs.1550 crore through the above mentioned issue of shares to Tata Sons and other options to fund its expansion and bring down debt.
Post this preferential issue, Tata Sons stake in the company will go up from current 28% to 33%.
The objective of this fund raising:
- Contracting retail space also involving on-brand built to suit developments
- Substantial expansion and automation of supply chain/warehouse capacity
- Significantly scaling up and upgrading information technology/digital infrastructure
- Exploring trial/scale up of proximate concepts that leverage the existing platforms
- Select investments in retail real estate developments
The company’s retail space is marked through three brands – Westside, Star Bazaar and Zara