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Escorts tumbles as Rakesh Jhunjhunwala pares stake

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Capital Market
Last Updated : Apr 12 2022 | 3:04 PM IST

Shares of Escorts slumped 3.1% to Rs 1551 as Rakesh Jhunjhunwala pared stake in the tractor manufacturing company.

In an exchange filing on Tuesday, Escorts reported that Rakesh Jhunjhunwala tendered his 47,19,362 shares, or 3.57% equity, of Escorts in the open offer where Japanese agricultural machinery manufacturer, Kubota, plans to increase its stake and become a joint-promoter.

Jhunjhunwala's name is absent from the latest shareholding pattern of Escorts, which was uploaded on the BSE website a few days ago. Listed companies are required to provide details of the shares held by investors whose shareholding in the company amounts to more than 1%.

Kubota is in the process of becoming a co-promoter of Escorts. The latest shareholding data shows that Kubota's stake has increased to 55.82% from 16.39% as on 18 February 2022.

In November 2021, Escorts' board announced that Kubota will acquire 3.74 crore equity shares or 28.42% of the expanded voting share capital. The open offer price was fixed at Rs 2,000 per share. The open offer for the tendering shares opened on 14 March 2022 and closed on 28 March 2022.

The last date for communicating the rejection/acceptance and completion of payment of consideration or refund of equity shares to the shareholders was 11 April 2022.

Shares of Escorts extended their losing run to fourth consecutive trading session. The counter has slumped 17.8% in four days.

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The Escorts Group is an Indian engineering company that operates in the sectors of agri-machinery, construction and material handling equipment, and railway equipment.

Escorts' consolidated net profit dropped 32.36% to Rs 193.71 crore on a 2.83% decline in revenue from operations to Rs 1,984.28 crore in Q3 FY22 over Q3 FY21.

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First Published: Apr 12 2022 | 2:23 PM IST

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