Trent's scrip soared 6.52 per cent to Rs 1,339.80 on the BSE.
On the NSE, the stock shot up by 6.42 per cent to Rs 1,340.90.
After the approval, Tesco will pick up a 50 per cent stake in Trent Hypermarket Ltd, a wholly-owned subsidiary of Trent Ltd, a Tata group company.
Tesco is the first global retailer to apply for multi- brand retailing after the government allowed 51 per cent FDI in the segment in September last year.
UK-based Tesco Plc became the first global retailer to get approval to enter country's multi-brand retail sector from the Foreign Investment Promotion Board.