Shares of Trent ended nearly 11 per cent higher on Wednesday after the UK-based retail giant Tesco filed the first multi-brand retail application seeking to invest $110 million to open supermarkets in the country with the Tata group firm.
After making a strong opening, the scrip jumped 18.19 per cent to Rs 1,260.65 on the BSE in the morning trade. Likewise on the NSE, the stock shot up 18.86 per cent to Rs 1,265.
However, the stock pared its early gains and ended higher by 10.74 per cent at Rs 1,181.15 on the BSE and up 10.98 per cent at Rs 1,181 on the NSE.
The Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce & Industry will scrutinise the application and forward it soon to the Foreign Investment Promotion Board for its approval.
The world’s third-largest retailer proposes to buy a 50 per cent stake in Tatas-owned Trent Hypermarket Ltd, which runs 16 outlets in the southern and western regions with back-end support from Tesco.
If the process succeeds, Trent and Tesco would aim to form a partnership with equal stakes in Trent Hypermarket, a statement from Trent had said yesterday.
Meanwhile, buying was seen in other retail stocks, with Shoppers Stop gaining 1.67 per cent and Future Retail rising 2.42 per cent.