Trent to raise Rs 118 cr

Retail chain Trent, owners of Westside apparel departmental stores and Star India Bazaar hypermarket, is raising Rs 118.1 crore through an issue of partly convertible debentures (PCD).

In order to part finance the company's expansion plans, the board of directors has approved the issue of partly convertible debentures with warrants aggregating to Rs 118.1 crore on a rights basis.

In other words, for every 10 equity shares of Trent held, the shareholders will be entitled to one partly convertible debenture of a face value of Rs 900 each.

The instrument will have three parts""part A will be converted into one equity share of the face value of Rs 10 each at a price of Rs 400 on allotment. Part B will consist of one non-convertible debenture of Rs 500 with a coupon rate of 2 per cent and a redemption premium payable on maturity, together it will give a yield to maturity of 5.5 per cent per annum over the five year period.

Part C will be one warrant, entitling the holder to acquire, against payment of cash, one share of Trent during the exercise period in the third, fourth or fifth year, at a price which would range between Rs 650 to Rs 750 per share, as may be fixed at the time of the issue.