By Malvika Gurung
Investing.com — Shares of the country’s biggest tractor manufacturer Escorts Limited (NS:) zoomed 8.5% to Rs 1,767.80 apiece at 1:05 pm on Thursday, after touching an intraday high of Rs 1,793.90 earlier in the session.
The agricultural machinery conglomerate’s shares surged after the Japanese tractor major Kubota Corp. (T:)’s announcement of increasing its shareholding in Escorts Ltd by March 31, 2022, by means of a fresh issue and an open offer bid, as per an agreement between the two companies.
The Japanese agricultural machinery major Kubota will acquire a total of 93,63,726 shares in EL priced at Rs 2,000 apiece. The company’s open offer at Rs 2000 per share will be for a maximum 26% stake, i.e., 3.75 crore shares, states a syndicated news report.
Kubota is highly bullish on the Indian agricultural business, and with an equity capital of Rs 1,872.7 crore, it will become a joint promoter in EL, along with the company’s existing promoters.
As of September 30, Kubota holds a stake of 9.09% in EL, while Nikhil Nanda’s family owns over 36% stake in the company.
On November 15, Escorts Ltd announced to hike the prices of its tractors starting Nov 21, 2021, to offset the increasing commodity prices, due to continuing inflation.