Shareholders of Trent Limited must ensure they own shares in their demat accounts by Thursday to be eligible for the company's 1:2 bonus issue. Under SEBI's T+1 settlement norm, today is the last day to purchase shares to ensure they are credited by the record date.
In April, Trent announced a 1:2 bonus issue alongside a Rs 6 dividend and Q4 results. The Tata Group company will issue one bonus share for every two shares held as of the record date, with 17.77 crore shares to be issued. Initially set for May 29, the record date was revised to June 4.
Trent plans to allocate the bonus shares by June 21, using Rs 17.77 crore from its share premium, which stood at Rs 1,924.3 crore as of March 31, 2026. This is the company's first bonus issue, following a Rs 5 dividend in June last year and a stock split in 2016.
“A bonus increases the number of shares and adjusts the price accordingly; it does not change the underlying business, cash flows, or economic ownership.”
Harshal Dasani, Business Head at INVasset PMS
Harshal Dasani, Business Head at INVasset PMS, cautioned that the bonus issue is not an investment trigger. "A bonus increases the number of shares and adjusts the price accordingly; it does not change the underlying business, cash flows, or economic ownership," he explained.
Trent shares have fallen over 25% in the past year, closing at Rs 4,210 on the NSE. Despite recent declines, the stock has gained 164% over three years and 393% over five years. Promoters hold a 37% stake, with Tata Sons owning over 32%.
Background
Trent's announcement of its first-ever bonus issue comes amid a backdrop of significant stock price fluctuations. The company's strategic moves, such as dividends and stock splits, highlight its efforts to enhance shareholder value.
As Trent prepares to issue its first-ever bonus shares, investors should monitor the company's performance and market conditions. The focus should remain on long-term growth prospects rather than short-term corporate actions.
