Farm machinery and construction equipment major Escorts Ltd on Thursday said it has received requisite approvals for the name change of the company from Escorts Ltd to Escorts Kubota Ltd with effect from June 9, 2022.

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The name change comes in the wake of Japan’s Kubota Corporation increasing its stake in Escorts to 44.8 percent by subscribing to new equity shares and through an open offer to the public shareholders of Escorts.

Kubota has increased its equity stake in Escorts to 44.8 percent by subscribing to new equity shares and through an open offer to the public shareholders of Escorts and also becoming a joint promoter of the company along with existing promoters, the Nanda family, whose shareholding in the company remains unchanged, the company said in a stock exchange filing.

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Nikhil Nanda continues to be the chairman and managing director of the company.

Escorts and Kubota Corporation, Japan had decided to strengthen their partnership aligned to their vision of global leadership in farm mechanization and spreading farming prosperity, it added.

In December last year, shareholders of Escorts Ltd approved the preferential allotment of nearly 94 lakh shares to Japan's Kubota Corporation.

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According to Nikhil Nanda, CMD, Escorts Kubota Ltd, "Our partnership with Kubota in Escorts Kubota Ltd has been welcomed by all our stakeholders and investors. Consequently, the process was completed smoothly. We are now well poised at a very interesting time in global history to contribute at much higher levels to India and the world's quest for food security, sustainable agriculture and smart agriculture.

Yuichi Kitao, president and representative director, Kubota, Japan, said, "We are very pleased to partner with Escorts Kubota Limited at a time when we can combine our strengths to provide advanced farm mechanisation solutions to address global food security & enhanced farm productivity needs."

Shares of Escorts Ltd ended at Rs 1,579.75, down by Rs 17.75, or 1.11 percent on the BSE.

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First Published:Jun 9, 2022 11:50 PM IST