Escorts at a new high

Escorts Ltd had a bright spike up in the opening bell session, opening almost 2.5% higher at Rs.1554 and going on to hit a new 52-week high at Rs.1572. From there though, profit booking has now pushed down the stock into the red at Rs.1508.

The stock price reacted to unconfirmed news reports that Japanese agriculture and heavy equipment firm Kubota Corp is in talks with the Nanda family - promoters of India's Escorts Ltd - to increase its stake and eventually become a controlling shareholder in the tractor maker and engineering construction company.

As per the shareholding pattern, currently the Nanda family is holding 36.59% stake of which 24.99% is held through Escorts Benefit & Welfare Trust.

The news is that Kubota plans to pick up 15% initially from the Trust which is currently priced at Rs.7600 crore and then buyout the promoters entire stake.

There is neither confirmation nor denial from the company about this news.