Summary:
Shares of Trent came under the spotlight after appearing to decline nearly 34% on the ex-bonus date. However, the sharp fall was largely a technical adjustment following the company's 1:2 bonus share issue rather than a genuine erosion of shareholder value. Investors continue to monitor the Tata Group retailer, which has delivered strong long-term returns and remains a key player in India's organised retail sector.
Trent Ltd's shares, part of the Tata Group and known for brands like Zudio and Westside, dropped about 34% on Thursday. Yet, this hefty fall was mainly technical due to a 1:2 bonus share release, not a real wealth hit for shareholders. On the NSE, the stock opened at ₹2,830, much lower than Wednesday's close of ₹4,257.60. This big dip looked like a 33%-34% drop, but it was mostly the price adjusting post-bonus issuance. By 9:25 AM, it had stabilized at around ₹2,785, marking a real decrease of just 2% once adjusted. So, while it seemed catastrophic at first, it wasn't the doom scenario it appeared to be.
How the Bonus Issue Works
In April, Trent announced a 1:2 bonus issue along with its fourth-quarter earnings and a dividend of ₹6 per share. Under the bonus issue, shareholders are entitled to receive one additional equity share for every two shares held as of the record date.
As part of the corporate action, the company planned to issue nearly 17.77 crore bonus shares with a face value of Re 1 each. Initially, the record date was fixed as May 29, but the company later revised it to June 4. Shareholders holding Trent shares on the record date became eligible to receive the bonus allotment.
The company intends to allot the bonus shares by June 21 by capitalising ₹17.77 crore from its share premium account. As of March 31, 2026, Trent had a share premium balance of ₹1,924.3 crore available for capitalisation.
First Bonus Issue in Nearly Three Decades
While this is Trent’s first bonus issue under the current management structure, it is the fourth bonus-related corporate action in the company’s history since listing. The company had previously announced a 1:1 bonus issue in 1996 and two 1:2 bonus issues in 1994 and 1989. The latest bonus issue comes nearly three decades after the previous bonus allotment.
Apart from bonus issues, Trent has also rewarded shareholders through dividends. The company paid a dividend of ₹5 per share in June last year, ₹3.20 in May 2024 and ₹2.20 in May 2023. It also undertook a 10:1 stock split in 2016.
Over the past year until Wednesday’s close, Trent shares had gained 15.5%, significantly outperforming the Nifty 50, which declined 4.9% during the same period. The retailer currently commands a market capitalisation of more than ₹1.5 lakh crore, reflecting investor confidence in its expansion-driven growth strategy.
