Escorts surges on getting shareholders nod for preferential allotment of shares to Japan’s Kubota

Escorts is currently trading at Rs. 1836.65, up by 22.70 points or 1.25% from its previous closing of Rs. 1813.95 on the BSE.

The scrip opened at Rs. 1830.00 and has touched a high and low of Rs. 1843.95 and Rs. 1816.80 respectively. So far 15125 shares were traded on the counter.

The BSE group ‘A’ stock of face value Rs. 10 has touched a 52 week high of Rs. 1897.80 on 09-Dec-2021 and a 52 week low of Rs. 1100.10 on 03-May-2021.

Last one week high and low of the scrip stood at Rs. 1857.00 and Rs. 1791.00 respectively. The current market cap of the company is Rs. 26453.90 crore.

The promoters holding in the company stood at 36.59%, while Institutions and Non-Institutions held 29.17% and 34.25% respectively.

Escorts has received shareholders’ approval for preferential allotment of nearly 94 lakh shares to Japan’s Kubota Corporation, which is seeking a majority control of the Indian partner and become a joint promoter.

The development follows last month’s deal under which Kubota will acquire an additional 5.9 per cent stake in Escorts for Rs 1,872.74 crore, paving the way for the Japanese partner to become a majority stakeholder of up to 54-55 per cent for which it could invest nearly Rs 10,000 crore, including an open offer to public shareholders for an additional 26 per cent stake.

The shareholders have also approved the change of the name of the company to Escorts Kubota or such other name containing the trade names Escorts and Kubota approved by authorities.

Escorts is one of India’s leading engineering conglomerates with over six decades of experience. It has helped accelerate India’s socio-economic development through its presence across the high growth sectors of Agri-machinery, construction & material handling equipment and railway equipment.

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