TNI || New Delhi || 24th Nov 2021
Indian tractor maker, Escorts shares that have jumped to more than 46% in the last three months are expected to gain 15% more as per a report furnished by Sharekhan, a research firm.
Notably, it has already been announced that Japan’s Kubota Corporation is going to raise its stake in Escorts to 14.99% by way of a preferential share issue that has aggregated to Rs. 1872 crore, that will further cement its place in India, which is considered as the world’s largest tractor market.
The joint entity looks forward to attaining global leadership across the farm equipment sector.
Interestingly, the Nanda family will not be selling any of their shares in the deal, and all the transactions will be subject to regulatory and shareholder approvals.
The name of the company due to the investment will be changed to Escorts Kubota Limited.
The deal is expected to be positive for Escorts as it will provide them with the opportunity to reflect on their present technology and enhance it further.