Shares of Trent Ltd., the prominent Tata Group retail company, experienced a significant price adjustment of around 33% in some trading applications today as the stock traded ex-bonus. This corporate action follows the company's announcement of a 1:2 bonus share issue for eligible shareholders.
The move means that for every two shares held, eligible investors will receive one additional share at no extra cost. While the number of shares an investor owns increases, the company's overall market capitalization remains unchanged, and consequently, the total value of an investor's holdings does not fundamentally alter.
Key Dates and Price Adjustments
Trent had initially set May 29, 2026, as the record date for determining bonus share eligibility, which was later revised to Thursday, June 04, 2026. The shares turned ex-bonus on this revised record date, triggering the price adjustment observed in the market.
Prior to the adjustment, Trent shares closed at Rs 4,258.10 on Wednesday. On Thursday, June 04, post-adjustment for the 1:2 bonus issue, the stock opened at Rs 2,833.45. The deemed date of allotment for these bonus shares is Friday, June 05, with their effective listing scheduled for Monday, June 08.
Investors who purchased the stock on or after the ex-bonus date will acquire shares at the adjusted price and will not be eligible for the bonus issue.
Company Performance and Analyst Outlook
For the quarter ended March 31, 2026 (Q4FY26), Trent reported robust financial results. Its net profit surged by 32.57% year-on-year to Rs 413.10 crore, with revenue climbing 19.23% to Rs 5,027.99 crore. The company also expanded its retail footprint, adding 23 Westside stores and 109 Zudio stores during the quarter.
Analysts have largely maintained positive ratings on Trent. Elara Capital has an 'accumulate' rating with a target price of Rs 4,800, while Geojit Investments, ICICIDirect Research, Axis Direct, and Motilal Oswal all recommend a 'buy' with target prices ranging from Rs 4,712 to Rs 5,250. It is important to note that these target prices are pre-bonus adjustment and would be proportionally adjusted post-corporate action.