Street positive on Escorts as Kubota moves into the driver's seat

Expansion of product portfolio, sourcing base and export opportunity to drive growth

The stock of tractor major Escorts rose 10.6 per cent in trade on Thursday and hit its all-time high after it announced that joint venture partner Kubota Corporation of Japan will take a controlling stake in the firm. The Street appeared to be positive on the deal.

The Japanese agri machinery and construction equipment major, which has a 9.09 per cent stake, is expected to increase its holding to 53.5 per cent after a preferential issue of equity, open offer and equity reduction of Escorts Benefit and Welfare Trust (Escorts Trust). The Nanda family has 11.6 per cent stake, while