Escorts Kubota Finance Ltd. was granted a "certificate of registration" by the Reserve Bank Of India to "commence the business of non-banking financial institution without accepting public deposits" according to an exchange filing on the BSE.
Escorts Kubota Finance is a wholly owned subsidiary company of Escorts Kubota Ltd.
This is in continuation to earlier intimations done through letters to the BSE on Sept. 20, 2024, and Jan. 9, 2024, the filing added.
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Earlier, on Aug. 16, parent company Escorts Kubota had submitted an investment intent to the Uttar Pradesh government to acquire land in the state for setting up a greenfield facility. The company intends to invest Rs 4,500 crore through direct and indirect investment in multiple phases.
The firm expects to generate employment for over 14,000 people once the project reaches full capacity. The company also expects the annual production revenue generation at full capacity to reach up to Rs 10,000 crore, according to areport by NDTV Profit.
Shares of Escorts Kubota Ltd. closed 0.39% higher at Rs 4,351.35 apiece on the NSE, compared to a 0.81% advance in the NSE Nifty 50.
It has declined 35.46% in the last 12 months and 45.87% on a year-to-date basis. The relative strength index was at 58.90.
Out of the 21 analysts tracking four have a 'buy' rating on the stock, 6 recommend a 'hold' and 11 suggest a 'sell', according to Bloomberg data. The average of 12-month Bloomberg analyst consensus price target implies a potential downside of 19.7%.
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