Veteran auto company Escorts will be renamed as ESCORTS KUBOTA LTD.

KUBOTA CORP LTD will increase its stake in Escorts. Shares worth Rs 1870 crore will be issued by the company to KUBOTA CORP. KUBOTA will buy stake in this company at Rs 2,000 per share. Apart from this, KUBOTA will also offer open discounts. With the new name, the number of board directors in the company will increase from 15 to 18 now.

In the company's board meeting on 19th november, the board issued 9,363,726 shares of face value of Rs 10 each to Kubota Corporation of Japan at a premium of Rs 2000 (at a premium of Rs 1990 per share) to the total equity capital of 18,72,74,52,000. However, this authorization will be subject to the necessary legal, regulatory and shareholder permits.

Apart from this, the process of this transaction will also have to comply with the provisions of Chapter V of the SEBI ICDR Regulations and applicable Companies Act, 2013. Let us tell you that Kubota Corporation is a company established under company laws of Japan (Investor). Giving an investment opinion on this stock on CNBC-Awaaz, market expert Amit Seth said that he has a bullish outlook on this stock. It can give good profits in the long term. At present, this stock is a bit runaway , so instead of buying at this level, it should be bought in the fall.