Trent hits a high on rights issue plan

DALAL STREET SPIKES

The retail arm of the Tata group, Trent soared 18.5 per cent on renewed buying interest. The stock closed at Rs 677.65, after hitting the day's high of Rs 685.40. The stock rallied on volumes of more than 1.7 lakh shares on BSE.

Market analysts said, the counter has attracted renewed buying ahead of its board meeting. The company in a notice to the stock exchange said, the 10-month results are being considered by the Trent board for the purpose of disclosure in the letter of offer in respect of the proposed rights issue.

Trent is coming out with a partly convertible debentures issue with warrants to the existing shareholders on rights basis. Trent plans to aggressively expand its Westside department stores and Star Bazaar hypermarkets, to cash in on the retail boom in the country.

The stock has witnessed a sharp rally since October last year. From a low of Rs 308.05 on October 11, 2004, the stock edged up to Thursday's close of Rs 677.65.