New Delhi, November 18th : , Japan’s Kubota Corporation has increased its share in Escorts to Rs 1,872.74 Crore in an effort to “strengthen the partnership”.Escorts stated in a statement that they will issue 9363,726 equity stock shares to Kubota via the preferential route, at Rs.2,000 each share.
After allotment Kubota will own 14.99% of Escorts.
According to SEBI regulations, Kubota would also openly offer the Escorts public shareholders to purchase up to 26% of the capital.
According to the statement JM Financial was the financial advisor for Escorts.
It also mentioned that Nanda Family, the promoter group at the moment of the company’s current formation, isn’t selling any shares it has in the business.
The company hopes to be one of the most important players in the space for farm equipment by forming Indo-Japan’s largest agriculture cooperations.
The statement stated that Escorts would be the only vehicle to manufacture and sell certain products in India as well as for sourcing products from India.
Nikhil Nanda, Escorts CMD, stated that the deal will allow both companies to increase their value by leveraging one another’s strengths, be they in technology, market access or manufacturing for engineering excellence.
Escorts will be able to serve Indian farmers and other global agricultural communities for many decades.
The company’s shares on the National Stock Exchange, (NSE), jumped more than 10% to Rs 1,796.
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