Shares of Trent today surged nearly 7 per cent after the Foreign Investment Promotion Board approved Tesco Plc’s proposal to enter the Indian multi-brand retail segment in joint venture with Tata group company with an initial investment of $110 million.
Trent scrip soared 6.52 per cent to Rs 1,339.80 on the BSE. On the NSE, the stock shot up 6.42 per cent to Rs 1,340.90.
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.
UK-based Tesco Plc became the first global retailer to get approval to enter the country’s multi-brand retail sector from the Foreign Investment Promotion Board.