Trent Ltd, the retail chain of Tata group, will be buying 51% stake in Booker India Pvt Ltd (BIPL) in a cash deal of around Rs 22 crore. This acquisition will help Trent to expand the business by adding six additional stores.
Trent said, “It is informed that the Company has agreed to acquire 51 per cent of the share capital of BIPL, for a consideration of Rs 22 Crores approximately. BIPL operations involve 6 stores.”
Booker India is operating five stores while its fully-owned subsidiary Booker Satnam Wholesale operates one store.
The company will likely complete the transaction by the end of October 2019.
For the financial year ended on March 31, 2019, BIPL had a turnover of Rs 238 crore, and Rs 43 crore of Booker Satnam Wholesale.
In June 2019, Trent had announced plans to raise up to Rs 1,550 crore in the current financial year. These shares would have been raised through a combination of issuance of shares to its promoter Tata Sons on a preferential basis and other options, to fund its expansion plans.