The farming hardware major, Escorts Ltd on Monday, declared about its new acquisition, Kubota Agricultural Machinery India Pvt Ltd (KAI). The procured organization has been joined under the laws of India from Kubota Corporation of Japan.
During the past monetary year, the board had endorsed the obtaining of 2,00,00,000 equity share of KAI (Japan), comprising 40% of the offer capital at Rs 45 for each equity share. The expressed exchange adds up to a total estimation of Rs 90 crore, for cash.
The acquisition further reinforces the extent of the agricultural business of the organization. As of the finish of fiscal year 20, the organization had detailed four plants in India with a complete manufacturing limit of farm hauliers and segments of 1,20,000 units every year. As far as its worldwide presence, the organization has one plant in Poland, which is a 100 per cent auxiliary with an introduced limit of 2,500 units every year. During the past fiscal year, the organization had educated that it has an under-development plant as an aspect of the joint endeavour with Kubota, with a yearly limit of 50,000 units.
The stock has just demonstrated to be a multi-bagger over the most recent five years. From October 2015 to October 2020, the stock enlisted heavenly returns of 650 per cent. Being the market chief and a conspicuous agricultural machine player, the organization has delighted in higher valuations.
On Tuesday, the stock opened higher by two per cent at Rs 1,260 on the BSE, continuing the noteworthy picking up streak.
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