The National Company Law Tribunal (NCLT) Chandigarh Bench has approved the merger of Escorts Kubota India Private Limited and Kubota Agricultural Machinery India Private Limited with Escorts Kubota Limited.
The shares of Escorts Kubota Limited were trading at ₹3,814.85, up by ₹27.35 or 0.72 per cent at 12:25 pm on the NSE today.
The scheme of amalgamation will become effective upon filing the order with the Registrar of Companies, NCT of Delhi and Haryana. This merger is expected to streamline operations and enhance synergies between the companies.
As part of the merger, Escorts Kubota will issue 1,379,492 equity shares with a face value of ₹10 each to Kubota Corporation, Japan. This includes 697,674 shares for its shareholding in Escorts Kubota India and 681,818 shares for its stake in Kubota Agricultural Machinery India.
The NCLT order addresses various regulatory aspects, including compliance with FEMA regulations for the share issuance to Kubota Corporation. The merged entity will be responsible for all pending legal proceedings and liabilities of the amalgamating companies.
The company is required to file a certified copy of the order with the Registrar of Companies within 30 days.
