Escorts releases its list of preferential shares for Japanese company Kubota; know its shareholding pattern

In a recent development, Escorts released its list of preferential shares for the Japanese company Kubota. Zee Business’ Research Analyst decodes the shareholding pattern for the Escorts. Read further to know what it bears for the company.

Dubey said that Kubota shared an update on its shareholding in the company. Although the shareholding pattern shows that investors sold their Mutual Fund stake in the company, the reality is the contrary.

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In an open offer, foreign portfolio investors (FPI) and MF investors gave a share tender. However, the open offer was only available between March 14 and March 28. The results of whether the shares will be returned or accepted were scheduled for April 11, 2022, he added.

The total bid received was approximately Rs 5.2 crore. Kubota owned around Rs 3.7 crore worth of shares. The acceptance ratio was between 72 per cent and 73 per cent, the Analyst said.

Escorts has shown the Rs 5.2 crore worth of shares under Kubota holdings, he added.

After this list, the MF holding decreased from 8.2 per cent to 0.28 per cent, the FPI dropped from 15.3 per cent to 3.57 per cent, and Rakesh Jhunjhuwala’s shares dropped from 5.78 per cent to 0 per cent, Dubey explained.

But, since the acceptance ratio is approximately 72 per cent, the expected shareholding of MF will be around 2 per cent, FPI will be around 4.25 per cent, Jhunhunwala’s will be approximately 1.5 per cent, and retail investors’ shareholding may stand close to 3 per cent, he opined.

The current shareholding list is just a proforma shareholding, but there will be a new shareholding set to be released that can have all the aforementioned names, he explained.

Market Expert Siddharth Sedani said buying a fresh set of M&M stocks can prove to be profitable for investors.

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