TNI || 29th Nov || 2021
Escorts share price has hit an all-time high of Rs. 1874, up by three percent on the BSE. The figures are from last week’s Friday’s intra-day trade.
This development is despite the company announcing the open offer schedule for the stake purchase by Kubota.
Morgan Stanley, the manager of the open offer, has said that the commencement of the tendering shares will begin from January 11 next year and will close on January 24.
A few days back, the Escorts board had announced that the Japanese Agri Machinery and Construction major shall acquire 46.9 million additional shares via preferential allotment with an open offer of Rs. 2000 per share and also join the Nanda’s as the co-promoter.
Kubota currently owns a 9.09 percent stake in Escorts and after the preferential issue of equity, is expected to raise its holding to 53.5 percent.
Last week has already seen Escorts stocks appreciate by 15 percent. Kubota’s taking over Escorts will clearly improve and enhance Escorts’ medium-term outlook.
Leveraging Escorts for global-competent supplies to support its global sales and tech support in construction equipment will be some of the many benefits derived by Kubota.