Trent jumped 7.87% to Rs 1074 at 11:34 IST on BSE after the company formally announced a joint venture with British retail giant Tesco to set up a supermarket in India.
The company made the announcement after market hours on Friday, 21 March 2014.
Meanwhile, the BSE Sensex was up 11.70 points, or 0.05%, to 21,765.45.
On BSE, so far 9,994 shares were traded in the counter, compared with an average volume of 4,304 shares in the past one quarter.
The stock hit a high of Rs 1,095 and a low of Rs 1,040 so far during the day. The stock hit a 52-week high of Rs 1,339.80 on 31 December 2013. The stock hit a 52-week low of Rs 902 on 1 November 2013.
The stock had underperformed the market over the past one month till 21 March 2014, sliding 2.63% compared with the Sensex's 5.09% rise. The scrip had also underperformed the market in past one quarter, falling 17.60% as against Sensex's 3.20% rise.
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The mid-cap company has an equity capital of Rs 33.23 crore. Face value per share is Rs 10.
Trent announced that it has approved definitive agreements with regard to investment by Tesco PLC, UK (Tesco) in Trent Hypermarket (THL), a wholly-owned subsidiary of Trent.
The agreements envisage that Tesco Overseas Investments (Tesco Overseas), a wholly-owned subsidiary of Tesco would purchase part of the equity shares currently held by Trent in THL for approximately Rs 150 crore and would separately subscribe to additional THL equity shares for an amount of approximately Rs 700 crore.
Following the conclusion of the proposed investment, Trent and Tesco Overseas will each hold a 50% stake in THL. The proposed investment by Tesco Overseas is subject to necessary approvals, the company said.
In December 2013, Trent announced that THL currently operates 16 stores across the Southern and Western regions of India. The proposed partnership will operate and build on the existing portfolio of Star Bazaar stores in Maharashtra and Karnataka, the company said.
In September 2012, the Government of India had allowed 51% FDI in the multi-brand retail sector, but the sector has failed to see any investment so far due to stringent rules set by the government.
The government on 6 June 2013 clarified that the foreign supermarkets entering India must invest in new supply chain infrastructure, such as warehouses and cold-storages, rather than buying existing assets. The government had stipulated that at least 50% of the investment made by the foreign company must be in supply chain infrastructure.
Net profit of Trent rose 11.91% to Rs 23.49 crore on 11.99% rise in net sales to Rs 274.43 crore in Q3 December 2013 over Q3 December 2012.
Trent, a part of Tata Group, is engaged in operating retail chains in India.
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