Escorts to sell entire stake in Escorts Securities

The auto maker on Thursday announced that it has entered into an agreement to sell its entire stake in Escorts Securities to Choice Equity Broking, a wholly owned subsidiary of Choice International.

Escorts will sell and transfer its entire 40.444% shareholding in Escorts Securities (ESL) to Choice Equity Broking. Post transaction, ESL will cease to be subsidiary of Escorts.

The consideration from the proposed sale is approximately Rs 5.17 crore, subject to adjustments in respect of proportionate profit/loss till the closing date in terms of the agreement.

Escorts Securities had a turnover of Rs 3.96 crore and net worth of Rs 12.33 crore as of 31 March 2020. The company posted a net loss of Rs 1.17 crore in FY2020.

Escorts is an engineering conglomerate with presence is sectors like agri-machinery, construction & material handling equipment and railway equipment. The company's consolidated net profit jumped by 85.1% to Rs 286.71 crore on a 23.8% rise in revenue from operations to Rs 2,042.23 crore in Q3 FY21 over Q3 FY20.

Shares of Escorts were up 2.49% at Rs 1270.10 on BSE.

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