Why did Trent shares fall 50% today? Here's what investors need to know

Shares of Trent Ltd. were trading adjusted for its 1:2 bonus issue on Thursday, June 4, the record date fixed by the company for determining eligible shareholders. The bonus issue was announced along with the company's March quarter earnings.

Trent share price

At around 10:37 am IST, Trent shares were trading at Rs 2,804, down 1.21 per cent for the day. The stock opened at Rs 2,830 and touched an intraday high of Rs 2,847.10 and a low of Rs 2,759.50. The company's market capitalisation stood at around Rs 99,740 crore.

Who is eligible for the bonus shares?

Trent had announced a bonus issue in the ratio of 1:2, meaning shareholders will receive one additional share for every two shares held on the record date.

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Investors who purchased Trent shares and had them in their demat accounts by the close of trading on June 3 will be eligible to receive the bonus shares. Since the stock is trading ex-bonus on June 4, investors buying shares today will not qualify for the bonus allotment.

How the bonus issue works

Under the 1:2 bonus ratio, a shareholder holding 200 shares of Trent on the record date will receive 100 additional shares.

As a result, the investor's total holding will increase to 300 shares after the bonus shares are credited. The share price adjusts proportionately after the bonus issue, reflecting the increase in the number of outstanding shares.

Shareholding pattern

Promoters held a 37 per cent stake in Trent at the end of the March quarter.

Among public shareholders, mutual funds owned 13.92 per cent, insurance companies held 6.36 per cent, while foreign portfolio investors had a 15.6 per cent stake. Nearly 5 lakh retail shareholders, classified as those holding authorised share capital of up to Rs 2 lakh, collectively owned around 14 per cent of the company.

First bonus issue in Trent's history

This marks the first bonus issue announced by Trent for its shareholders.

The company had previously undertaken a stock split in 2016, when one equity share with a face value of Rs 10 was split into 10 shares of Re 1 each.

Trent has also maintained a consistent dividend payment record. For FY26, the company has announced a final dividend of Rs 6 per share and fixed June 12 as the record date.

While investors purchasing the stock on June 4 will not be eligible for the bonus shares, they can still qualify for the dividend payout if they meet the eligibility criteria before the dividend record date.

Stock performance

Ahead of the record date, Trent shares ended Wednesday's session 0.7 per cent higher at Rs 4,242. Despite strong long-term gains, the stock has remained largely flat in 2026 so far and is down 1.3 per cent on a year-to-date basis. The stock has a 52-week high of Rs 4,174 and a 52-week low of Rs 2,183.66.