Key Points
Deepak Shenoy, Founder, Capital Mind, says when Kubota took over, the ESOP trust the company had created to evade a hostile takeover earlier and which owned 25%, was written down to zero..
So while it has made its all-time high technically today, I think it had been done a little bit earlier, because if you consider the Rs. 250 extra that you would have got if you owned Jio Financial as well, I mean, because it was demerged, then the price is actually above Rs..
See, the reason we got into Escorts was a special situation where Escorts by virtue of 30 or maybe nearly 40 years ago now, there was a hostile takeover of Escorts attempted by an NRI person, I forget his name..
There was nothing illegal about it at that time but they used the company money in various ways to effectively purchase shares of the company itself, which eventually sat in an ESOP trust.. 25% of the company was owned effectively by this ESOP trust, which was only benefiting the company..
As for the future scope and prospects, we will wait for some of these things to take effect, because the stock has priced in a lot of this detail and therefore, I do not see an incremental opportunity as big as in some of the other stocks..
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