Rakesh Jhunjhunwala stocks: This tractor manufacturing share in Big Bull's portfolio hits fresh 52-week high, stock up nearly 10% — Here is why

Shares of this India's leading tractor manufacturing company rose nearly 10% to Rs 1793.15 per share on the BSE in Thursday's intraday trade amid outcome of the Board meeting of the company. At around 12.30 pm, shares of India's leading tractor manufacturing company, Escorts Ltd, were trading with a gain of Rs 135.25 per share or 8.30% at Rs 1765.40 after zooming to a new 52-week high on Thursday.  

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The spike in Escorts stock price comes amid the board of directors of the company allowed Japan's Kubota to increase its shareholding in the Indian 'pioneer of farm mechanization' in the country, Escorts.  

As per the agreement between Escorts Ltd and Kubota, the latter will increase its stake in the Indian tractor manufacturing company from 9.09% to 14.99% and shares will rise from 12,257,688 to 21,621,414, showed Escorts Ltd BSE filing.  

As many as 93,63,726 equity shares of face value of INR 10 each at a price of INR 2,000 per equity share aggregating to Rs 18,72,74,52,000 has been proposed to be issued to the Japanese firm.  

"The Board has approved the raising of equity capital aggregating to Rs 18,72,74,52,000 through preferential issue of 93,63,726 equity shares of face value INR 10 at INR 2,000 per share (including a premium of Rs 1,990 for each equity share), to Kubota Corporation, Japan, a company incorporated under the laws of Japan," said the company's press release.
Post execution of the offer, Kubota will acquire control over the Company to become a joint promoter of the company along with the existing promoters.  

Big Bull of Indian share market, Rakesh Jhunjhunwala, holds 4.8% stake in the company, as per BSE September shareholding pattern. The Indian billionaire holds 6,400,000 shares worth Rs 1,033.1 crore as on November 18, 2021, as per Trendlyne, a platform for stock market analysis.