Trent trades ex-stock split; surges 9%

Since June 28, the stock outperformed the market by surging 53% as compared to 7.5% rise in the Sensex.

Trent has moved higher by 9% to Rs 257, also its new high on the BSE in intra-day trade, after the stock was traded ex-stock split in the ratio of 10:1 on Monday.

The company has fixed September 14, 2016 as the record date for the purpose of sub- division of face value.

The board of Tata Group Company on June 28, approved the sub-division of equity shares of the company having a face value of Rs. 10 per share into equity shares having a face value of Re. 1 each, to make their stock more affordable to smaller shareholders.

Since then, the stock has outperformed the market by surging 53% from Rs 168 (adjusted to stock split), as compared to 7.5% rise in the S&P BSE Sensex.

On September 9, CARE, the rating agency revised the long-term rating assigned to the bank facilities and instruments of Trent, factors in continued improvement in the operational and financial performance of the company.

The ratings factor in its strong parentage, experienced management, healthy capital structure and comfortable liquidity position.

The ratings also factor in the Joint Venture (JV) with the British major, Tesco PLC (Tesco), for Trent’s Star Bazaar format which is likely to result in operational improvement due to Tesco’s established track record in the retail segment and reduction in financial commitments towards the hypermarket segment for Trent, CARE said in a statement. LINK

At 11:28 am, the stock was up 4% at Rs 244 on the BSE as compared to 1.42% decline in the benchmark index. A combined 222,401 shares changed hands on the counter on the BSE and NSE so far.