Shares of Escorts dropped 4 per cent Monday as the company formed a joint venture (JV) with Japan's Kubota Corporation to produce high-end technology tractors for domestic as well as export geographies.
The stock dived 3.56 per cent to close at Rs 603.85 on BSE. During the day, it declined 4.13 per cent to the intra-day low of Rs 600.25.
On NSE, scrip of the company shed 4.08 per cent to end at Rs 601.1. The scrip had touched a high of Rs 614.4 and a low of Rs 601 during the trading session.
In terms of equity volume, over one lakh shares of the company were traded on BSE and more than 14 lakh shares changed hands on NSE during the day.
Engineering and farm equipment maker Escorts has formed a JV with Kubota Corporation to produce high-end technology tractors for domestic as well as export geographies, a joint statement issued by the two companies Monday said.
"With an initial investment of Rs 300 crore, the 60:40 manufacturing JV between Kubota and Escorts, respectively, will enable both partners to optimise their current and future capabilities in the segment globally," it added.
Kubota group specialises in agriculture, water, and living environment products and has presence in over 100 countries.