No plan to list hived-off verticals now: Escorts
Delhi-based Escorts Group said it has no plans to list its three big business verticals (agri-machinery, construction and material handling equipment, railway equipment and auto components) as separate entities anytime soon.
July 05, 2011 / 12:53 IST
Delhi-based Escorts Group said it has no plans to list its three big business verticals (agri-machinery, construction and material handling equipment, railway equipment and auto components) as separate entities anytime soon.
A recent newspaper report said the company was planning to list its verticals and in the process, it might take the decision to completely de-merge its railway equipment and auto component business into a separate entities.The report further said, their main aim was to unlock the value of its subsidiary businesses and gain a good price for them. Also, the company wants to offer investors varied opportunities beyond the tractor business. However, an official from Escorts told CNBC-TV18 that the company was not planning to list its verticals and the decision to opt for listing would take at least three to four years.The company is currently looking to boost its railway and construction businesses and has made investments for the same, the official added.Last year, the group cancelled its plans for an IPO as they wanted a better market mood and pricing scenario to list the business. Earlier in the day, shares of the company had risen over 3% after the Times of India newspaper reported it will hive off the railway component and auto component businesses as part of a plan to list big business verticals as separate entities."There is no specific timeline as of today," Nanda said.At 10:30 A.M., Escorts shares, valued at Rs 1220 crore, were off highs at Rs 117.35, up 1.47 percent.See 15-20% growth on waning manual labour: Escort
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
