Shares of Trent today skyrocketed nearly 19 per cent after UK-based retail giant Tesco filed the first multi-brand retail application seeking to invest USD 110 million to open supermarkets in the country with the Tata group firm.
After making a strong opening, shares of Trent further jumped 18.19 per cent to Rs 1,260.65 on the BSE. On the NSE, the stock shot up by 18.86 per cent to Rs 1,265.
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 backend support from Tesco.
If the application is successful, 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 by 1.67 per cent and Future Retail rising by 2.42 per cent.