Trent to raise Rs 1,550 crore to fuel expansion plans

By

Maverick Martins

Published
Jun 19, 2019

Tata Group's retail arm Trent Ltd is looking to raise up to Rs 1,550 crore ($222.9 million) during the current financial year to fund its expansion plans in the country.
 

The funds will be raised through a combination of issuance of shares to its promoter Tata Sons on a preferential basis and other options.
 
The company has said that about Rs 950 crore will be raised from issuance of shares to the promoter while the remaining Rs 600 crore will be raised through the issue of equity shares.

For the 2018-19 financial year, Trent’s profit was Rs 127 crore as against Rs 117 crore it had posted in the previous year. Total income in the last fiscal stood at Rs 2,568 crore as compared to Rs 2,109 crore in 2017-18.
 
“The total amount to be raised from issuance of shares to the promoter is about Rs 950 crore. Independent of the above issuance, the board of directors also appointed a committee of the board to explore options to raise additional funds not exceeding Rs 600 crore in financial year 2019-20 by issue of equity shares or other securities,” Trent Ltd said in a regulatory filing.
 
"The foregoing fundraising proposal was considered by the board of directors in the context of the company's funding requirements given the growth plans," it added.
 
Trent Ltd operates Westside and Zudio stores, which sell products ranging from apparel, footwear, accessories to cosmetics and perfumes to home accessories. It currently has over 150 Westside and 12 Zudio stores across India.