Trent Ltd Declares 600% Dividend and 1:2 Bonus Issue
Mumbai, India – Trent Ltd, the prominent retail subsidiary of the Tata Group, has announced a significant payout for its shareholders, recommending both a 600% dividend and a 1:2 bonus share issue. The decision was made following the company's financial results for the quarter and year ending March 31, 2026, released post-market hours on Wednesday.
The board of directors proposed a dividend of 600%, equating to Rs 6 per equity share, based on a face value of Re 1 each. Shareholders will receive this dividend if approved at the upcoming Annual General Meeting (AGM). The company clarified that should the proposed bonus share issuance be approved, the dividend per share would be proportionately reduced to account for the increased number of outstanding equity shares post-bonus.
In addition to the dividend, Trent's board also greenlit the issuance of bonus shares in a 1:2 proportion. This means that for every two existing equity shares held, investors will receive one new fully paid-up equity share of Re 1. While the exact record date for determining eligibility will be announced later, the bonus shares are expected to be credited or dispatched to eligible shareholders within two months of the board meeting's approval, specifically by June 21, 2026.
Shareholder Impact and Stock Performance
The dual announcement presents a substantial benefit to Trent Ltd shareholders, combining immediate cash returns with an increase in shareholding. The actual dividend payment is slated for on or after the third day following its declaration at the AGM, with a specific record date to be fixed by the board.
Despite the positive news, shares of Trent Ltd experienced a slight decline in early trade on Thursday, dropping as much as 4% to Rs 4252.60 per share on the BSE, eventually settling down 2.49% at Rs 4325.20 per share. However, this dip comes after a period of strong growth, with the stock having gained nearly 29% over the preceding one-month period, reflecting robust investor confidence ahead of these announcements.