Trent Limited Buyback 2024

1. Overview: Trent Limited is a retail company and a part of the Tata Group, one of India’s largest and most respected conglomerates. Founded in 1998, Trent is headquartered in Mumbai and operates in the Indian retail sector.

2. Products and Services: Trent Limited operates several retail chains in India, with its flagship brand being Westside, a leading chain of fashion stores offering a wide range of apparel, footwear, accessories, and home décor. The company also owns and operates Zudio, a value fashion chain, Star (formerly Star Bazaar), a chain of hypermarkets offering groceries and household products, and Landmark, a retail chain for books and music.

3. Business Model: Trent’s business model focuses on the retail segment, with a strong emphasis on private labels, which account for a significant portion of the products sold in its stores. This strategy allows the company to maintain higher margins and better control over product offerings.

4. Geographical Reach: Trent Limited has a strong presence across India, with a network of over 200 Westside stores, more than 100 Zudio stores, and several Star hypermarkets and Landmark stores. The company continues to expand its footprint across the country, particularly in urban and semi-urban areas.

5. Subsidiaries and Joint Ventures: Trent Limited has formed strategic alliances and joint ventures to strengthen its market position. Notably, it has a joint venture with the global retail giant Inditex, operating Zara stores in India under Inditex Trent Retail India Private Limited. Additionally, the company has entered into various partnerships to expand its product lines and market reach.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Offer Amount: ₹ 105.08 Cr.
Date of Board Meeting approving the proposal: Aug 09 2024
Date of Public Announcement: Aug 09 2024
Buyback Number of Shares: 1,40,000
FV: 1000
Buyback Price: ₹ 7506 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 1,40,000 (One Lakh Forty Thousand) equity shares of the Company at a price of  Rs. 7,506//- (Rupees Seven Thousand Five Hundred Six Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 105,08,40,000/- (Rupees One Hundred Five Crores Eight Lakhs Forty Thousand Only).

Salient financial parameters:

Particulars (In cr) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 3,486 2,593 4,498 8,242 12,375
Expenses + 2,957 2,479 3,903 7,128 10,404
Operating Profit 529 114 595 1,114 1,971
OPM % 15% 4% 13% 14% 16%
Other Income + 147 199 152 341 989
Interest 263 261 325 409 368
Depreciation 247 257 311 494 671
Profit before tax 165 -205 111 552 1,921
Tax % 36% -12% 69% 29% 23%
Net Profit + 106 -181 35 394 1,477
EPS in Rs 3.46 -4.11 2.98 12.51 41.82
Dividend Payout % 29% -15% 57% 18% 8%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Trent Limited in Demat or physical form as on the record date [To be updated].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [To be updated] by selling your shares through your broker on NSE or BSE,
3. Then on [To be updated], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 26 Shares at CPM of Rs. 6994 (2,00,000/7506)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 181844 181844 181844 181844
No. of Shares Buyback 8 13 19 26
Buyback Profit 4096 6656 9728 13312
Profit% 2.25% 3.66% 5.35% 7.32%

7 Comments

    Admins should remove this page to avoid confusion.Trent is not conducting any share buyback . Inditex Trent, which is an unlisted company with Inditex Group and Trent as its only shareholders is buying back shares and Trent is going to tender shares of that company in that buyback. No one except Trent and Inditex Group can participate in that buyback since they are the only shareholders of Inditex Trent. It is just a coincidence that the buyback price of these unlisted shares is close to the market price of Trent shares.

    Reply

      If I purchase only 01 share of Trent @ Rs. 7000/- for buy back at Rs. 7516/-, is it mandatory for the company to buy back 01 share as I want small profit only.

      Reply

        Please go through the comments/explanations made on the subject already in this arena

        Reply

    Trent is a booming stock alright. But in terms of percentage, the buyback is less than.05 % of the share capital of this large cap giant. Is there anything in this for participation!More than 770000 shares changed hands in NSE alone today. Have I gone wrong in my calculation in arriving at.05 percentage?

    Reply

      Dear Gopiji,

      I wanted to bring to your attention that there is a mistake in the information provided here.

      The correct news is that Trent is participating in the buyback approved by its associate company, Inditex Trent Retail India Private Limited.

      Reply

        Thank you Parikh ji for the kind response. It appears as if Inditex India Pvt. Ltd is not a listed entity and hence the Buyback is by Trent. Since the issue is confusing and no information is available about the size of the issue in terms of percentage, I think there is no point in participation

        Reply

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