Trident shares jump 17% on reports of Welspun contract shift

NEW DELHI: Shares of manufacturing company Trident jumped nearly 17 per cent in afternoon trade on Friday after reports surfaced that Target Corporation was mulling to hand over Welspun contract to the company.

Target Corp. is considering shifting its bedsheets orders to Trident Ltd., a supplier among those that stand to win some of the $90 million in business that rival Welspun India Ltd. lost after it was caught passing off cheaper sheets as premium Egyptian cotton, according to people familiar with the discussions, Bloomberg said in its report.

Target on August 19 severed business ties with India’s largest home textiles exporter after the company said it discovered that sheets and pillows labeled as premium Egyptian cotton were actually made with another type of cotton.

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Trident is a flagship unit of conglomerate Trident Group. It is the world's largest manufacturer of terry towels and one of the largest manufacturers of wheat straw-based paper.

At 01:05 pm, shares of the company were trading at Rs 58.10 apiece, up 16.67 per cent from its previous cloe on Bombay Stock Exchange( BSE).