Escorts shares jump over 6% on implementing VRS

Shares of farm equipment major Escorts Ltd gained over 6 per cent today after the company announced implementation of a voluntary retirement scheme (VRS) as part of its organisational restructuring.
Escorts' stock jumped 6.11 per cent to settle at Rs 161.60 on the BSE. In intra-day, it surged 7.12 per cent to Rs 163.15.
At the NSE, the scrip surged 6.49 per cent to end at Rs 162.45.
In terms of volume, 13.13 lakh shares of the company changed hands at the BSE, while over 46 lakh shares were traded at the NSE during the day.
"With an operational focus on improving business performance, Escorts Ltd has successfully implemented group-wide future-oriented VRS, aimed particularly at restructuring Escorts Auto Products," the company said in a statement.

The exercise will cost around Rs 30 crore and will have a payback of two years. The one time impact will be reflected in the company's Q2 results. The exercise was closed within 30 days, it added.
"This largest-ever VRS at Escorts was availed by 350 employees and will enable greater efficiencies and productivity due to rationalisation of deployment," the company said.
Commenting on the development, Escorts Executive Vice President (HR & ER) Ishan Mehta said: "Our VRS offer was part of an overall group-wide strategic initiative to make Escorts leaner and smarter organisation. Through this, we have sought to become even more focused on productivity and improve our organisational efficiencies.