Deals23 Oct 2024, 10:05 pm
Escorts Kubota Ltd. to Sell Railway Equipment Division for INR 1,600 Crore
AI Summary
Escorts Kubota Ltd. has approved the sale of its railway equipment division to Sona BLW Precision Forgings Limited for a lump sum cash consideration of INR 1,600 Crore. The sale is expected to be completed by September 30, 2025, subject to the fulfillment of certain conditions precedent. The railway equipment division contributed 10.83% to the company's total turnover and 3.76% to its net worth during the financial year 2023-2024.
Key Highlights
- The sale is a strategic decision by Escorts Kubota Ltd. to focus on its agri and construction equipment sectors.
- The railway equipment division contributes INR 950.41 crores to the company's total turnover.
- The division contributes INR 342.63 crores to the company's net worth.
- Sona BLW Precision Forgings Limited is the buyer, a public company listed on the National Stock Exchange of India Limited and BSE Limited.
- The sale is not a related party transaction.