Trent Shares Fall After Stock Trades Adjusted for 1:2 Bonus Issue: What You Need to Know

Shares of Tata Group company Trent Ltd. fell on Thursday, June 4, after the stock began trading adjusted for its bonus issue. The decline came after the company’s shares were adjusted for a 1:2 bonus issue announced following its June quarter results. Under this corporate action, eligible shareholders will receive one bonus share for every two shares held as on the record date, which was fixed for Thursday, June 4.

Investors who held Trent shares in their demat accounts by the close of trading on Wednesday, June 3, will qualify for the bonus shares. Those buying the stock on Thursday, June 4, or later will not be eligible for this bonus issue. In practical terms, a shareholder holding 200 Trent shares on the record date will receive 100 additional shares, taking the total holding to 300 shares. As with all bonus issues, the share price adjusts to reflect the increased number of outstanding shares.

Trent’s shareholding pattern shows that promoters held a 37% stake at the end of the March quarter. Among public shareholders, mutual funds owned 13.92%, insurance companies held 6.36%, foreign investors had a 15.6% stake, and nearly 5 lakh retail individual shareholders, or those with capital up to ₹2 lakh, held 14% in the Tata Group stock.

This is the first time Trent has announced a bonus issue for its shareholders. The company previously split its shares in 2016, when one ₹10 share was divided into 10 shares of ₹1 each. Trent has also maintained a history of annual dividend payouts. For the current year, it has announced a final dividend of ₹6 per share, with the record date fixed for Friday, June 12.

As a result, investors purchasing Trent shares on Thursday may miss out on the bonus issue but could still be eligible for the dividend if they remain shareholders by the dividend record date. The stock was trading 2.6% lower on Thursday at ₹2,783 after the bonus adjustment.