04 Jun , 2026 By : Debdeep Gupta
Shares of Trent Ltd appeared to plunge more than 33 percent on Thursday after the Tata Group retailer's stock turned ex-bonus for its recently announced bonus issue. Trent shares were trading at Rs 2,771 in morning trade, down from Wednesday's closing price of Rs 4,257.6.
Most of this sharp decline reflects the stock price adjustment following the bonus issue, and not a destruction in value. However, the shares were also trading lower by 2.4 percent at Rs 2,771 on an ex-bonus adjusted basis, emerging as the top loser on the Nifty 50 index.
June 4 has been fixed as the ex-date for Trent's bonus share issue in the ratio of 1:2. Under the issue, shareholders will receive one bonus equity share for every two shares held as of the record date.
In a bonus issue, the number of shares outstanding increases while the company's overall market value remains broadly unchanged. As a result, the stock price adjusts lower on the ex-bonus date to reflect the increased share count.
Adjusted for the bonus issue, Trent's stock has delivered strong gains over the longer term. The stock had risen 15.5 percent over the past year through Wednesday's close, outperforming the Nifty 50's decline of 4.9 percent during the same period. The company commands a market capitalisation of more than Rs 1.5 lakh crore.
Brokerage firm HSBC remains bullish on Trent stock with a Buy rating and a target price of Rs 4,910 per share (pre-bonus adjustment), implying a 15 percent upside. The brokerage said Westside has resumed expansion with larger-format stores, while enhanced disclosures for Zudio provide better visibility into growth trends.
HSBC added that Trent's core business remains stable, although growth at Star is moderating. The brokerage continues to see long-term growth opportunities driven by store expansion and the company's value-fashion business. Trent operates retail formats including Westside, Zudio and Star.
The latest bonus issue is Trent's fourth such corporate action since listing. It follows a 1:1 issue in 1996 and two earlier 1:2 bonus issues in 1994 and 1989. The current issue comes nearly three decades after Trent's previous bonus share allotment.
0 Comment