'Escorts Kubota Limited' will be the new name for Escorts.
Escorts, a tractor manufacturer, announced that it has gained the necessary licenses to change its name from "Escorts Limited" to "Escorts Kubota Limited" with effect from June 9, 2022.
The rebranding comes after Kubota Corporation of Japan increased its investment in Escorts to 44.8 percent by subscribing to additional equity shares and making an open offer to Escorts' public shareholders.
Kubota has also joined the firm's existing promoters, the Nanda family, as a joint promoter. The Nanda family's investment in the company has remained constant. Chairman and Managing Director (CMD) Nikhil Nanda continues to lead the company.
The Start of a New Era
"All of our stakeholders and investors have praised our relationship with Kubota in Escorts Kubota Ltd. As a result, the procedure went off without a hitch. We are now in a unique position in world history to make far larger contributions to India's and the world's search for food security, sustainable agriculture, and smart agriculture "Nikhil Nanda quoted in a press release.
"We are very pleased to cooperate with Escorts Kubota Ltd at a time when we can combine our strengths to create innovative farm mechanization solutions to solve global food security and enhanced agricultural production needs," said Kubota President and Representative Director Yuichi Kitao.
Kubota Corporation of Japan said in November of last year that it had struck an agreement with Escorts Limited (EL) under which Kubota will expand its shareholding in EL by March 31, 2022 through a subscription to third-party preferential primary share allotment and open offer bid.
On a preferential basis, Escorts will issue 93,63,726 equity shares with a face value of $10 each to Kubota at a price of $2,000 per equity share. Kubota will join the existing promoters as a joint promoter of the company after the open offer is completed and the issue becomes effective, according to the companies.
The company recently announced that it has set aside up to Rs. 400 crore in capital expenditure for the current fiscal year to launch new products and expand production capacity.
Electric tractors, which have begun to be exported to markets such as the United States and Europe, are expected to account for up to 15% of the business's entire overseas shipments in the next five to six years, according to the company.