Escorts Kubota Limited has informed the Exchange about statement of deviation(s) or variation(s) under Reg. 32
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Awaiting price reaction for this filing.
Escorts Kubota has filed a quarterly compliance statement confirming that the Rs. 1,872.745 crore raised through a preferential issue in February 2022 is being used as originally planned. Net proceeds after issue-related expenses stood at Rs. 1,855.306 crores, earmarked for expanding its agri-machinery business covering tractors, combine harvesters, utility vehicles, construction machinery, engines, and related parts. As of March 31, 2025, only Rs. 131.168 crores has been deployed toward these objects, with the balance still pending utilization. The Audit Committee reviewed the statement and raised no objections, and no monitoring agency was appointed for this issue. The filing confirms there is no deviation or variation from the stated purpose of the fund raise.
This is a routine regulatory compliance disclosure with no negative findings, so it carries a neutral to mildly positive signal for shareholders. However, the low deployment of proceeds (around 7% of net funds over three years) may raise questions about the pace of capex or whether the company is sitting on large unutilised capital awaiting the right opportunity.