Tata Group is planning to increase stake in its retail arm Trent as the company seeks shareholders’ approval to issue shares on a preferential basis to Tata Sons.
Trent will raise Rs. 950 crore from Tata Sons through the preferential issue. It will use the money to finance its growth plans.
The shareholders are requested to “record their assent (for) or dissent (against) in the postal ballot form and return the same” by 24 July, Trent Ltd. said in a BSE filing.
The transaction will increase the stake of Tata Sons to 33 per cent in Trent from the current 28 per cent, and the group’s overall stake will rise to 37 per cent from the existing 33 per cent.
Trent will issue 2.46 crore equity shares to Tata Sons at a price which, according to rules, should not be lower than the 26-week average and two-week average of the price of the company’s stock preceding Monday’s announcement.
Trent Ltd. had announced plans to raise up to Rs. 1,550 crore in the current financial year through a combination of issuance of shares to Tata Sons on a preferential basis and other options, to fund its expansion.
Established in 1998, Trent is among the profitable units within the Tata Group.
