After the stake sale, the Tata group firm’s shareholding in Massimo Dutti India will be reduced to 20%, according to a regulatory filing
New Delhi: Tata group retail firm Trent will sell its 29% share held in Massimo Dutti India to its majority JV partner Grupo Massimo Dutti, Spain for a consideration of Rs 20.75 crore.
After the stake sale, the Tata Group firm’s shareholding in Massimo Dutti India will be reduced to 20%, according to a regulatory filing.
The board of Trent, in its meeting held on Thursday, “approved a proposal for sale of 1,75,450 equity shares of face value Rs 1,000 each held by the company in Massimo Dutti India, an associate company with 49% shareholding, pursuant to the offer received from Grupo Massimo Dutti, Spain”.
The Spanish fashion powerhouse will purchase equity shares from Trent at Rs 1,182.6 apiece, aggregating to Rs 20.75 crore.
Massimo Dutti operates three stores and recorded revenue of Rs 101 crore in FY24.
Spanish multinational clothing company Inditex Group owns the brand Massimo Dutti.
With Inditex group, Trent has another JV which operates Zara business in the country.
“The company has two separate associations with the Inditex group of Spain with a shareholding of 51% (Inditex): 49% (Trent) – one entity to operate Zara stores and the other for Massimo Dutti stores in India,” Trent had said in its latest annual report.
In FY24, the Zara entity recorded revenue of Rs 2,769 crore.
These entities are obliged to source merchandise only from the Inditex Group, and the choice of product and related specifications are at the latter’s discretion.
Shares of Trent Ltd were trading at Rs 5,454.30 apiece on the BSE on Friday afternoon, up 3.40% from the previous close.
