Trucking News
Kubota

Escorts & nbsp;Dropped 8% Within Last Two Days, Just Two Days Before Kubota’s Open Offer Closure

TNI || New Delhi || 30th March 2022

Kubota

In intra-day trade for the week starting March 28th, 2022, Escorts’ stock fell 5.5 percent to Rs 1,704 on the BSE.

The stock has fallen 8% in the last two days of trading as Kubota Corporation’s open offer to buy an additional 28.42 percent of the firm ended. On December 31, 2021, the stock reached a new high of Rs. 1,927.

Apollo Tyres To Be Baleno’s Original Equipment Tyre Manufacturer

Escort’s board of directors stated on November 18, 2021 that Kubota will purchase 37.49 million equity shares, or 28.42 percent of the enhanced voting share capital. The price of the open offer was set at Rs 2,000 a share. The tendering share open offer began on March 14, 2022, and expired on March 28, 2022.

Elon Musk Confirms Tesla Looks Forward To Finish off Cybertruck Development This Year

The public shareholders’ offer shares shall be accepted proportionately, subject to a maximum of 37.49 million equity shares being acquired. However, there is no guarantee that the open offer will accept all of the equity shares offered by public stockholders.

The public shareholders will receive the unaccepted equity shares. According to Morgan Stanley India’s stock exchange filings, some 43.62 million equity shares have been offered in the open invite till March 25, 2022.

JK Tyre Brings The Revolutionary Puncture Guard Technology To Its Tyres

Escorts produces engines for earthmoving and handling of materials, machinery, farm tractors, hydraulic shock absorbers, internal combustion engines, and other railway-related products. Kubota, a Japanese agri-machinery and construction equipment company, owns a 9.9% stake in Escorts.

ONGC Videsh Sells Sokol Oil From Russia To HPCL And BPCL

Through a preferential offering of equity, a public offer, and equity reduction, Kubota is expected to expand its ownership to 53.5 percent. Meanwhile, Escorts Agri Machinery (EAM) reported a 45.6 percent drop in tractor sales year on year, with 6,114 units sold in February 2022 opposed to 11,230 in February 2021.

Tractor industry wholesales were low in February 2022 due to a high base from the prior year, severe price increases due to commodity price inflation, and above average stock levels in the channel, as per Escorts.

New Pollution Standards For Tractors Unlikely To Cause Substantial Disruption: Icra

Higher Rabi planting this year, healthy water reservoir levels, enhanced union budgeting for the rural and agro sectors, and regular monsoon trends are likely to be positive catalysts for the tractor sector in the coming year, according to the company.

AllEscort