Some unconfirmed news on the counter. I suspected this might be one of the next steps, since the Mid Term Business Plan details in the Auuunal Report were very generic for the Railway business, whereas for Agri they had mentioned definitely plans on capex. Construction Equipment business also am not sure, if they want to retain if Kubota is not having similar products.
We have to wait to see how this benefits minority investors or not. I would have preferred if they demerged this business, distributed shares to minority investors, listed it seperately and then sold the promoter stake to buyer. If its a slump sale, then the cash hoard just increases.
India’s Escorts Kubota mulls sale of railway equipment unit -CNBC-TV18 | Reuters
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