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Board of Escorts approves investment from Kuboto Corporation, Japan

Capital Market 

Board approves investment of Rs 90 cr in Kubota Agriculture Machinery India

The Board of Escorts at its meeting held on 20 March 2020 has approved the following -

The Board has approved raising of equity share capital aggregating to Rs 1041.90 crore through preferential issue of 1,22,57,688 equity shares of face value of Rs 10 at Rs 850 for each equity share to Kuboto Corporation, Japan.

Subject to the allotment of the above shares, the Board has granted in-principle approval to consider reduction of issued, subscribed and paid up equity share capital of the company by cancelling and extinguishing 1,22,57,688 equity shares of Rs 10 each, which are currently held by Escorts Benefit and Welfare Trust, without payment of any consideration to the aforesaid Trust. This capital reduction will ensure that the total equity share capital of the company remains unchanged even after the proposed issue.

The Board has approved the acquisition of 2 crore equity shares of Kubota Agriculture Machinery India (KAI) from Kubota Corporation, Japan constituting 40% of the share of KAU at Rs 45 per share for an aggregate value of Rs 90 crore, all for cash.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 20 2020. 18:22 IST