Trent shares up 2% on hopes FIPB would clear Tesco's proposal

MUMBAI: Shares of retail major Trent today rose by 2 per cent on hopes that FIPB would clear UK-based Tesco's $110 million (about Rs 680 crore) investment in multi-brand retail.

Trent's scrip settled at Rs 1,257.75, up 2.03 per cent from its previous close on BSE. During the day, the stock soared 4.24 per cent to Rs 1,285.05.

At the NSE, the scrip closed 1.92 per cent up at Rs 1,259. The Foreign Investment Promotion Board (FIPB) today approved Tesco Plc's proposal to enter the Indian multi-brand retail segment in a joint venture with Tata Group company with an initial investment of $110 million (about Rs 680 crore).

The announcement came after market hours. After the approval, Tesco will pick up a 50 per cent stake in Trent Hypermarket Ltd, a wholly-owned subsidiary of Trent Ltd, a Tata group company.

Tesco is the first global retailer to apply for multi- brand retailing after the government allowed 51 per cent FDI in the segment in September last year.

Trent Hypermarket runs 16 outlets in the southern and western regions with support from Tesco.