Escorts allowed to change name to Escorts Kubota Limited after Japanese firm raises stake in domestic tractor manufacturer
Leading tractor and farm machinery manufacturer Escorts Limited has rebranded itself as Escorts Kubota Limited, the company said in a regulatory filing on Thursday, June 9, 2022
Leading tractor and farm machinery manufacturer Escorts Limited has rebranded itself as “Escorts Kubota Limited”, the company said in a regulatory filing on Thursday, June 9, 2022. Nikhil Nanda will continue to be the Chairman and Managing Director (CMD) of the Company.
The development assumes significance in the backdrop that Japanese firm Kubota has raised its equity stake in Escorts to 44.8% recently.
"With reference to our earlier communication on 18th November 2021, Escorts Limited (“Escorts” or “Company”) has received requisite approvals for the name change of the Company from “Escorts Limited” to “Escorts Kubota Limited” with effect from June 9, 2022," a statement from the company read.
It further said Escorts and Kubota Corporation, Japan (“Kubota”) had decided to strengthen their partnership aligned to their vision of global leadership in farm mechanization and spreading farming prosperity.
Kubota has increased its equity stake in Escorts to 44.8% by subscribing to new equity shares and through an open offer to the public shareholders of Escorts, and also becoming a joint promoter of the Company along with existing promoters, the Nanda family, whose shareholding in the Company remains unchanged.
“Our partnership with Kubota in Escorts Kubota Limited has been welcomed by all our stakeholders and investors. Consequently, the process was completed smoothly. We are now well poised at a very interesting time in global history to contribute at much higher levels to India and the world’s quest for food security, sustainable agriculture and smart agriculture," said Nikhil Nanda, CMD, Escorts Kubota Limited.
Yuichi Kitao, President and Representative Director, Kubota, Japan, said, we can combine our strengths to provide advanced farm mechanisation solutions to address global food security & enhanced farm productivity needs.
Amid market volatility, shares of Escorts were trading flat at Rs 1577.10 per share around 10.45 am on the BSE on Friday
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.