Trent up over 10%

Trent has zoomed up into the green today morning, currently up almost 10.5% at Rs.1182.15, with an intra day high at Rs.1260.65.  Volumes have gone up by a jaw dropping 43.50 times.

The stock is reacting to the news that Tesco Plc, British multinational grocery & general merchandise retailer, will become the first foreign multi-brand chain to enter the Indian market. DIPP has received a proposal from Tesco for a 50% FDI in the issued and paid up equity share capital of Trent Hypermarket Ltd (THL), a Tata group enterprise, to engage in the activities of multi-brand retailing. According to the proposal, the JV will operate in India through a chain of stores under various banners, including Star Bazaar, Star Daily, Star Market. Tesco will be investing Rs.680 crore in this venture and the deal is for first three years, which going ahead, can be extended. It will be having its presence in Maharashtra and Karnataka. This will be the first FDI in retail to finally take off, after more than year when it got approval from the Parliament, a stormy session of heated debates.