Tata Group to increase stake in retail arm Trent
Tata Group plans to increase its stake in its retail arm Trent from 33 percent to 37 percent as its holding company Tata Sons increases its stake from 28 percent to 33 percent for Rs 950 crore ($137 million).
Tata’s Trent, which runs the Westside and Star Bazaar retail chains, is currently raising funds for its expansion, TNN reported. Tata Sons has decided to increase its stake in Trent by buying 2.46 crore equity shares and will seek approval for the deal from Trent’s shareholders on June 26. The shares will be sold to Tata Sons through a preferential issue at a price no lower than the 26 week average and two week average share price, in compliance with official regulations.
Tata Group, valued at $111 billion, counts Trent as one its profitable units. Trent aims to expand its fashion and food sections across the board. It aims to expand retail space and supply chain, increase its warehouse capacity, and ameliorate its digital infrastructure. Trent aims to raise a total of Rs 1,550 crore over the next year for its expansion plan which the Tata Sons investment will be put towards.
As part of its expansion plan, Trent’s fashion retail chain Westside will open 40 stores every year for the coming few years. Trent also aims to open over 100 of its value-fashion Zudio stores each year for the foreseeable future.
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