Escorts jumps on board’s nod to buy stake by Kubota, stock hits 52-week high.

Escorts touched a 52-week high of Rs 1,793.15 after the board of the company approved buying more stake in the company by Kubota Corporation and the stock rallied 9 per cent in intraday today i.e. November 18.

Shares of Escorts jumped almost 9 percent in intraday today

The company said in a press release that the board, in its meeting held on November 18, issued 93,63,726 equity shares with a face value of Rs 10 per share to Rs 2,000 per share (with a premium of Rs 1,990 per share). Approved the release of Rs. 1,872 crore to Kubota Corporation, Japan at the rate of Rs.

Now Kubota Corporation will increase its equity stake in tractor manufacturer Escorts to 14.99 percent.

Escorts jumps on board's nod to buy stake by Kubota, stock hits 52-week high.
Escorts jumps on board’s nod to buy stake by Kubota, stock hits 52-week high.

Kubota will take fresh equity shares to be issued by Escorts and will become a joint promoter with the Nanda family, the existing promoters of the company.

AlSo read: Supreme court decision: Online option in CBSE, CISCE term 1 examinations, Decision may come today.

The open offer will be made at Rs 2,000 per share at the same price as the preferential issue. After this open offer, Kubota’s stake in Escorts will increase to 44.80 per cent.

As per the BSE shareholding pattern as of the quarter ended September 2021, Kubota Corporation currently holds 9.09 per cent stake in Escorts.

The Board has approved the conversion of the name of the Company from “Escorts Limited” to “Escorts Kubota Limited” or any other name bearing the trade names of “Escorts” and “Kubota”. However, this would require the approval of the Central Registration Center (“CRC”), ROC and other regulatory authorities.

JM Financial acted as Financial Advisor to Escorts Ltd.

Today at 11:58 pm, the Escorts stock was trading at Rs 1,767.95 or Rs 137.80 or up 8.45 per cent on the BSE.