Escorts Kubota Limited has confirmed that there is no deviation in the utilization of proceeds raised from its February 2022 preferential issue. As of the quarter ended March 31, 2026, the company maintains strict adherence to the objects stated in its initial Letter of Offer, ensuring transparent and efficient deployment of capital towards its core agri-machinery and equipment business expansion.
Financial Utilization Update
Escorts Kubota Limited has successfully verified the status of its funds raised via preferential issues. The company initially secured Rs. 1,872.745 Crores on February 18, 2022. Following a deduction of Rs. 17.440 crores toward expenses related to the issue and allotment, the net proceeds have been managed in full compliance with the company’s planned objectives.
Breakdown of Fund Deployment
The company reports that as of the fourth quarter (Jan-Mar 2026), Rs. 545.219 Crores of the allocated funds have been effectively utilized. The original allocation of Rs. 1,855.306 Crores remains dedicated to the expansion of its agri-machinery business.
Expansion Objectives
The capital is specifically earmarked for the growth of manufacturing, assembly, sales, and research and development across several key product categories, including:
- Tractors and combine harvesters
- Rice transplanters and turf equipment
- Construction machinery and engines
- Utility vehicles and transmission components
The Audit Committee has reviewed the utilization statement and confirmed that there have been no deviations or variations in the use of proceeds, affirming the company’s commitment to its long-term strategic growth plans.
Source: BSE
