Rakesh Jhunjhunwala Portfolio: Escorts Receives SEBI Nod; Big Bull Raises Holding

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Rakesh Jhunjhunwala Portfolio: Escorts Receives SEBI Nod; Big Bull Raises Holding

By Malvika Gurung

investing.com -- The agriculture machinery company Escorts (NS: ESCO ) has received approval for an open offer from the market regulator SEBI, as the Japanese tractor major Kubota Corp is looking forward to acquiring a majority stake in Escorts and becoming a co-promoter.

As a result, the country’s biggest tractor manufacturer Escorts’ shares closed 0.9% higher today, when most auto stocks declined. Sectoral index Nifty Auto tanked 3%.

Ae investor Rakesh Jhunjhunwala added 11 lakh more Escorts shares on Feb 22, raising his stake in the company from 5.22% as of Dec 31, 2021, to 5.68% in Feb 2022. He currently holds 75 lakh equity shares of the tractor maker.

In Nov 2021, Kubota Corp had announced increasing its shareholding in Escorts through a fresh issue and an open offer bid, by March 31, 2022.

With the market watchdog, SEBI giving its green signal for an open offer to Escorts, brokerage firm Edelweiss expects it to begin in another 2-3 weeks and the tendering period to close two weeks later.

The brokerage expects Escorts’ shares to rise up to Rs 950 over the next few sessions but suggests investors sell the shares as soon as the stock hits the Rs 2,000 mark. 

The stock ended at Rs 1,867.6/share on Wednesday.

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