Trent Limited, a prominent player in the retail sector, has taken a significant step in reducing its stake in Massimo Dutti India Private Limited (MDIPL), an associate company in which it previously held a 49% shareholding. The Board of Directors, in their meeting held on February 6, 2025, approved the sale of 1,75,450 equity shares of ₹1,000/- each at a price of ₹1,182.60 per share, which translates to a total consideration of ₹20.75 crore. Upon completion of this share transfer, Trent's shareholding in MDIPL will reduce to 20%, marking a significant shift in its equity structure.

The sale is being conducted following an offer from Grupo Massimo Dutti, Spain, for the purchase of these shares. Grupo Massimo Dutti, an international brand known for its fashion clothing, footwear, and accessories, operates numerous specialized stores worldwide. It is important to note that the buyer, Grupo Massimo Dutti, does not belong to Trent’s promoter group or any of its associated group companies, ensuring that the transaction remains at arm's length.

The share purchase agreement (SPA) is expected to be executed before March 31, 2025, with the completion of the sale anticipated by the same date. The company has disclosed the relevant details as required under SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, particularly in the context of an associate company like MDIPL.

Financial Impact:

The transaction, amounting to ₹20.75 crore, has a relatively small impact on the consolidated financials of Trent Limited. The total income from MDIPL for the financial year 2023-2024 stood at ₹101.79 crore, contributing just 0.80% to Trent’s total income. Similarly, MDIPL's net worth amounted to ₹59.82 crore, representing 1.47% of Trent's consolidated net worth.

Strategic Implications:

The sale reflects Trent's strategy to adjust its equity stake in Massimo Dutti India, aligning its operations with its evolving business goals. The reduced stake is not expected to impact Trent's overall market position significantly, as the company continues to focus on its core retail operations.

In compliance with the latest SEBI circular and Listing Regulations, Trent has provided all the necessary disclosures regarding the transaction. This includes details on the sale price, buyer information, and confirmation that the transaction does not fall under related party transactions.

For shareholders, the sale is expected to be completed by March 31, 2025, and will be subject to all necessary formalities. Trent Limited is committed to maintaining transparency and compliance throughout the process, ensuring that the interests of all stakeholders are protected.

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