1:2 Bonus Share: Tata Group Stock in Focus After Board Sets Record Date for Bonus Issue

Synopsis: Trent Limited’s board approved a 1:2 bonus issue on April 22, 2026, with May 29 as the record date, funded by capitalizing ₹17.78 crore from the securities premium account. Post-issue, paid-up capital will rise from ₹35.55 crore to ₹53.32 crore.

Shares of Trent Limited, the Tata Group’s fashion retail arm behind Zudio and Westside, are in focus after the company’s Board of Directors approved a bonus issue: shareholders will receive one new fully paid-up equity share of ₹1 for every two existing shares held as of the record date.

With a market capitalization of approximately ₹1,50,789 lakh crore, shares of Trent Limited were trading around ₹4,247.80 on the NSE with a 52-week range of Rs. 6,261 to Rs. 3,275. It is trading at a P/E of 86.7.

Bonus Issue Details

Trent’s Board of Directors, at its meeting held on 22nd April 2026, approved a 1:2 bonus issue, one free share for every two held, with 29th May 2026 fixed as the record date. The bonus shares will be issued by capitalizing up to ₹17.78 crore from the securities premium account, as per audited financials for the year ended 31st March 2026. 

Post-allotment, Trent’s paid-up capital will increase from ₹35.55 crore (35.55 crore shares) to ₹53.32 crore (53.32 crore shares), with implementation expected within two months, by approximately 22nd June 2026, subject to regulatory approvals. 

To accommodate the expanded share count, the Board has also sought shareholder approval to reclassify its Authorised Share Capital converting the existing mixed structure of equity, preference, and unclassified shares into 85,55,00,000 equity shares of ₹1 each, keeping total authorized capital unchanged at ₹85.55 crore. The company stated the move is aimed at rewarding shareholders, improving affordability, and enhancing liquidity.

Alongside this, Trent’s board cleared the ‘ESOP 2026’, proposing to grant up to 8,88,700 stock options (0.25% of total issued capital as on 31st March 2026) at an exercise price of ₹3,978 per option, pegged to the NSE closing price on 15th April 2026. Each option converts into one equity share of ₹1. The exercise price and option count will be adjusted post-bonus to preserve economic value for employees.

About Trent Limited

Incorporated in 1952, Trent Limited is a Tata Group company and one of India’s fastest-growing listed fashion retailers, operating 1,286 stores across 321 cities, including 3 in the UAE, with a retail footprint of over 17.70 million sq. ft. Its flagship formats, Zudio (963 stores) and Westside (300 stores), anchor its retail portfolio. In Q4FY26, Trent posted standalone revenue from operations of ₹4,937 crore (up 20% YoY), Operating EBITDA of ₹668 crore (up 43%) and PAT of ₹455 crore (up 30%). For the full year FY26, standalone revenue stood at ₹19,701 crore. 

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