Escorts Kubota Limited has formally confirmed that there has been no deviation or variation in the utilization of funds raised through a recent preferential issue. This statement, made pursuant to SEBI regulations, assures stakeholders that the proceeds have been used for the objects as originally stated in the Letter of Offer. The company’s Audit Committee has reviewed and confirmed this, with detailed information provided in an attached statement.
Confirmation of Fund Utilization
Escorts Kubota Limited has issued a statement confirming no deviation or variation in the utilization of funds raised via a preferential issue. This disclosure adheres to the requirements of Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Adherence to Stated Objects
The company explicitly states that the proceeds from the preferential issue have been used in accordance with the objects detailed in the original Letter of Offer. This confirmation reinforces investor confidence by demonstrating transparency and adherence to the company’s commitments made during the fund-raising process.
Audit Committee Review
Further, Escorts Kubota Limited has indicated that a detailed statement outlining the utilization of these proceeds, and confirming the absence of any deviation, has been duly reviewed by the Audit Committee. This ensures an independent oversight and validation of the company’s financial practices concerning the preferential issue.
Key Details of Preferential Issue
The preferential issue, which took place on February 18, 2022, raised an amount of Rs. 1,872.745 Crores. The report filed pertains to the quarter ended September 30, 2026. The original objects for which funds were raised encompassed the expansion of its agri-machinery business, including manufacturing, sales, marketing, financing, servicing, research, and development of various equipment such as tractors, combine harvesters, utility vehicles, turf equipment, and construction machinery, among other related items and spare parts.
The total funds raised, after deduction of expenditure related to the preferential issue and allotment, amounted to Rs. 1,855.306 Crores. Out of this, Rs. 1234.585 Crores has been utilized as of the reporting quarter, with Nil deviation noted against the applicable objects.
Source: BSE
