On Thursday, July 7, 2022, Escorts Kubota announced that from Sunday, July 10, 2022, the prices of its tractors would increase.
The company claimed that a price increase was necessary to partially offset the rise in input costs caused by ongoing inflation as a result of a constant rise in commodity prices. According to the statement, price increases will differ between models and variants.
The Escorts Group is an Indian engineering company that deals with agri-machinery, construction and material handling equipment, and railway equipment.
Escorts Kubota reported a 28.1 percent loss in its combined net profit to Rs 190.92 crore on a 15.7 percent drop in operating revenue to Rs 1,878.51 crore in Q4 FY22 compared to Q4 FY21.
On the BSE, Escorts Kubota shares increased 0.56 percent to Rs 1,571.10.
Tractor maker Escorts has changed its name to "Escorts Kubota Limited" with effect from June 9, 2022. After raising its ownership of Escorts to 44.8 percent through the subscription of additional equity shares and an open offer to Escorts' public shareholders, Japan's Kubota Corporation changed the company's name.
Along with the current promoters, the Nanda family, whose ownership of the company has not changed, Kubota has also joined the company's promotion team. The company's chairman and managing director, Nikhil Nanda, remains in that position.
By signing up for a third-party preferential primary share allotment and making an open offer bid, Kubota Corporation of Japan would raise its ownership in Escorts Limited (EL) by March 31, 2022, according to an announcement made in November of last year.
Escorts will issue Kubota 93,63,726 equity shares with a face value of 10 each at a preferential price of 2,000 per equity share. Kubota will join the existing promoters as a joint promoter of the company after the open offer is completed and the issue becomes effective, the companies had stated.
