Escorts Kubota has confirmed that there was no deviation or variation in the utilization of proceeds from its preferential issues for the quarter ended September 30, 2025 (Q2 2025). The confirmation follows Regulation 32 guidelines, ensuring funds were used as originally intended. The initial preferential issue aimed to raise Rs. 1,872.745 Crores.
Preferential Issue Compliance
Escorts Kubota announced that it adhered to the intended utilization of funds raised through preferential issues. As of September 30, 2025, there were no deviations or variations from the objects specified in the Letter of Offer.
Fund Allocation Details
The preferential issue, which occurred on February 18, 2022, aimed to raise Rs. 1,872.745 Crores. The raised funds are primarily designated for the expansion of the company’s agri-machinery business, including manufacturing, assembly, sales, marketing, financing, servicing, research, and development. This encompasses tractors, combine harvesters, rice transplanters, utility vehicles, turf equipment, construction machinery, engines, implements, and related components.
Agri-Machinery Business Expansion
The planned allocation towards agri-machinery business expansion stands at Rs. 1,855.306 Crores, with an actual utilization of Rs. 293.251 Crores until September 30, 2025. This allocation covers various segments including tractors and combine harvester among others.
Source: BSE
