Rakesh Jhunjhunwala portfolio stock Escorts has received SEBI’s approval for an open offer, through which, Japanese agricultural machinery manufacturer — Kubota is looking to buy shares to increase its stake and become a co-promoter. “We expect the open offer to commence anytime in the next two to three weeks and the tendering period to close after 2 weeks from the start date,” Edelweiss said in a note. Escorts is expected to inform the stock exchanges about SEBI’s approval in a few days along with an offer letter. Shares of Escorts rose 1% on Wednesday morning to trade at Rs 1,874 per share.

Kubota takeover update

Kubota is in the process of becoming a co-promoter of Escorts. The Japanese firm has so far increased its stake in the company with the help of a preferential issue. As of February 18 this year, Kubota owned a 16.73% stake in Escorts. The firm has upped its shareholding by 6.73%. Kubota’s total shareholding in Escorts currently stands at 2,16,21,414 equity shares. “The completion of payment of consideration or return of Equity Shares to the Public Shareholders can spill over till the start of April. We will get exact timelines once the letter of offer is published,” said Edelweiss. 

Escorts open offer is expected to commence anytime in the next two to three weeks and the tendering period to close after 2 weeks from the start date. “Ideally from March 1, the entire open offer process should not take more than five to five and a half weeks for completion,” Edelweiss noted. 

Stock price may soar

Analysts believe that with the open offer approved by the market watchdog, Escorts’ share price may soar higher. The scrip has gained more than 1% already on Wednesday, outperforming the market. Edelweiss’ Abhilash Pagaria said that Escorts’ share price may run up to Rs 1,950 in the next few days and the final acceptance to be around 80%. He added that if the stock moves nearer to Rs 2,000 or above, then the acceptance would be 100%. 

Edelweiss is suggesting investors sell their shares instead of tending them. “Our open offer trade is ITM by 4.5% and we will continue to ride it. Also, the current levels are lucrative for further building the positions,” they added.

Rakesh Jhunjhunwala owned stock

Big bull Rakesh Jhunjhunwala has recently increased his stake in Escorts, the latest shareholding data showed. Rakesh Jhunjhunwala has added 11 lakh shares of Escorts to his portfolio, taking his shareholding to 5.68% from 5.22% earlier. Rakesh Jhunjhunwala now owns 75 lakh equity shares of the company. At today’s high, the value of big bulls stake in Escorts stands at Rs 1,405 crore.