Trent board approves rights issue

Trent, the retail arm of the Tatas, today said its board has approved the rights issue of cumulative compulsorily convertible preference shares (CCPS).

The company said it will issue four CCPS for every nine equity shares held on the record date, which would be announced later.

Trent said series A CCPS would be converted into one equity share on September 01, 2011 and series B CCPS would be converted on September 01, 2012. Until conversion, the CCPS will carry a nominal dividend of 0.1 per cent on the face value of Rs 10 each, it said in a statement to the exchanges.

The company earlier announced the issuance of shares on rights basis to its shareholders to raise as much as Rs 500 crore to fund its expansion plans.