by Apparel Resources News-Desk
20-June-2019 | 2 mins read
Trent Ltd., the retail arm of Tata Group that runs Westside and Star Bazaar, plans to raise a total amount of Rs. 1,550 crores to fund its expansion, through issue of shares to its promoter Tata Sons, which holds a 27.74 per cent stake in the company, on a preferential basis.
“The board of directors at its meeting approved issue of equity shares on a preferential basis to Tata Sons Pvt. Ltd., promoter of the company, subject to such regulatory/statutory approvals as may be required, including approval of the shareholders of the company,” Trent Ltd. said in a regulatory filing.
The company said total amount to be raised from issuance of shares to the promoter is about Rs. 950 crore and has also appointed a committee of the board to explore options to raise additional funds not exceeding Rs. 600 crore in FY 19-20 by issue of equity shares or other securities including through qualified institutional placement, rights issue or any other permissible mode or a combination of any suitable methods.
Trent Ltd. is pursing a substantially accelerated growth programme across the Westside, Zudio and Star formats on the back of a positive traction for its lifestyle retail concepts.
“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 posted revenues of Rs. 2,630 crore during FY 18-19 mainly through nearly 145 Westside department stores and 40 Zudio value format outlets.
It also partners with Inditex to run fast fashion brand Zara and Trent Hypermarket, an equal joint venture between Tata and British retailer Tesco.
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