Escorts gets volatile

Escorts is extremely volatile today; the stock opened flat at Rs.1628.95, went on to hit a new high at Rs.1664.80 and then profit selling took it down to an intraday low at Rs.1590 and it is now once again up in the green at Rs.1634 levels.

This news has been going around for a couple of months now but currently, it seems as though the companies are reaching some form of agreement – the rumour going around is that Japanese agriculture and heavy equipment company Kubota Corporation is reportedly in talks with the promoters of Escorts to increase its holding and ultimately become the controlling shareholder. They are said to be investing around Rs.5000 crore at Rs.2300/share.

Kubota currently holds a 9.1% stake in Escorts, acquired last year through a preferential allotment.

Reports suggest that Kubota may initially acquire a 15% stake from the Nanda family before buying them out entirely.

This is pure rumour as there is no news on this front from the company.