The automaker announced Thursday that it had entered into an agreement to sell its entire stake in Escorts Securities to Choice Equity Broking, a wholly-owned subsidiary of Choice International.
Escorts will sell its entire 40.444% stake in Escorts Securities (ESL) and transfer it to Choice Equity Broking. After the transaction, ESL will no longer be a subsidiary of Escorts.
The consideration from the planned sale amounts to approx. 5.17 billion rupees, subject to adjustments of the pro-rata profit / loss up to the reporting date in accordance with the agreement.
Escorts Securities had sales of Rs.3.96 billion and net assets of Rs.12.33 billion as of March 31, 2020. The company recorded a net loss of Rs.1.17 billion in fiscal 2020.
Escorts is a mechanical engineering conglomerate with industries such as agricultural machinery, construction and material handling equipment and railway equipment. The company’s consolidated net income increased 85.1% to Rs.286.71 billion after operating revenue for the third quarter of FY 21 versus the third quarter of FY 20 increased 23.8% to $ 2,042.23 billion. Rupees had risen.
Escorts’ shares rose 2.49% to Rs 1270.10 on BSE.
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(This story was not edited by Business Standard staff and is automatically generated from a syndicated feed.)
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