Escorts in the red

The open offer in Escorts, which began on 14th March, closes today.  

As per the offer, Kubota Corporation has made a cash offer to acquire up to 3.75 crore fully paid up equity shares of face value Rs 10 each at a price of Rs, 2,000 per share representing 28.42% of the expanded voting share capital.

Once the open offer concludes, Escorts will complete the transfer of over a 50% stake to Japanese agro-machinery firm Kubota by March-end and we expect to see a mid-term business and investment road map for Escorts Kubota, the new entity.

The stock opened in the red today, down 2% at Rs.1769, going down further by 6% to hit an intraday low at Rs.1698.45, with no sellers than buyers on the counter.