Trent bonus issue 1:2 and ₹6 dividend for FY26

What Trent announced on April 22

Trent, the Tata Group retailer that runs Westside and Zudio, has announced its first-ever bonus share issue along with a final dividend and its Q4 and full-year FY26 results. In an exchange filing dated April 22, the company said it will issue bonus shares in a 1:2 ratio, subject to shareholder approval. It also recommended a final dividend of ₹6 per equity share for FY26, described as 600% on the company’s ₹1 face value shares.

The announcement matters because a maiden bonus issue typically draws investor attention to the company’s capital structure, liquidity, and shareholder reward policies. Trent also outlined other board actions linked to long-term expansion, including an enabling approval to raise funds and a new employee stock option plan.

Bonus issue ratio and eligibility

Under the proposed bonus issue, Trent will issue one bonus equity share of face value ₹1 for every two fully paid-up equity shares of face value ₹1 each held on the record date. The company said the record date to determine eligible shareholders will be announced later. Only shareholders holding the shares as on the record date will be eligible to receive the bonus shares.

Trent said the bonus issue will be subject to shareholders’ approval. While a bonus issue increases the number of outstanding shares, it does not change the company’s market capitalisation, as the adjustment is typically reflected in the share price.

Size of the bonus and source of capitalisation

The company said around 17.77 crore shares of face value ₹1 each will be issued as part of the bonus offer. It plans to allot the bonus shares by June 21, using share premium worth ₹17.77 crore.

Trent also disclosed that its total share premium available for capitalisation stood at ₹1,924.3 crore as of March 31, 2026. The use of share premium for capitalisation is one of the common routes for issuing bonus shares.

Dividend: ₹6 for FY26 and past payouts

Alongside the bonus proposal, Trent recommended a final dividend of ₹6 per equity share for FY26. The company has a history of dividends in recent years, with the data in the provided context showing:

• ₹5 per equity share in June last year (for FY25)
• ₹3.20 in May 2024
• ₹2.20 in May 2023

The FY26 recommendation marks a higher final dividend than the prior year’s figure cited in the text. The dividend recommendation, like the bonus, is subject to shareholder approval.

FY26 performance snapshot

For the fiscal year ended March 31, 2026, Trent reported a standalone net profit of ₹1,967.82 crore, as stated in the provided text. The same context also said the company reported a 20% year-on-year rise in standalone revenue to ₹4,937 crore in a recent quarterly update.

These disclosures formed the backdrop for the board’s decision to pair audited FY26 results with shareholder-friendly actions such as the dividend recommendation and the maiden bonus issue.

Expansion funding plan and ESOP 2026

Trent said its board granted enabling approval to raise up to ₹2,500 crore through a rights issue or other permissible modes for future expansion. The company also adopted a new employee stock option plan titled ‘Trent Limited – Employee Stock Option Plan 2026’.

As per the details provided, the ESOP plan involves issuance of 8,88,700 equity shares, representing 0.25% of the total issued share capital as of March 31, 2026. The board also announced a reclassification of its authorised share capital, described as an effort to streamline its capital structure for future growth.

Stock reaction and key trading levels cited

Trent shares were reported in focus around the announcement window, with multiple price points and moves cited across the provided context. The stock’s reaction was linked to the board agenda that included audited results, the maiden bonus proposal, dividend, ESOP enablement, and an enabling resolution for fundraising.

Market data points mentioned (as cited)

A separate note in the provided context also cited technical levels from a domestic brokerage: resistance at ₹4,303.96 and ₹4,365.13, and support at ₹4,154.67 and ₹4,066.53, with the stock trading around ₹4,411 at a point mentioned.

What a bonus issue changes for investors

A bonus issue distributes free shares from reserves to existing shareholders in a fixed ratio. The key practical change is that shareholders receive more shares, while the stock price typically adjusts to reflect the larger share count. The company’s market capitalisation does not change due to the bonus alone, but the increased number of shares can improve liquidity and make the stock more accessible at the adjusted price level.

For Trent, the announcement is also notable because it is described as the company’s first-ever bonus issue. The company previously undertook a stock split in 2016 in the ratio of 10:1, as stated in the provided text.

What to watch next: record date and shareholder approvals

Two near-term items will likely determine how the corporate actions proceed in practice. First, Trent has said it will announce the record date later, which will determine which shareholders qualify for the bonus shares. Second, both the dividend and bonus issue are subject to shareholder approval.

The company has also indicated a timeline for allotment, stating it plans to allot the bonus shares by June 21. Investors will therefore watch for the record date announcement, shareholder meeting outcomes, and any further disclosures linked to the fundraising enablement and the ESOP implementation.