Escorts will issue 93,63,726 equity shares through a preferential issue to Kubota at an issue price of Rs 2000 per equity share aggregating Rs 1872.74 crore. Post allotment, Kubota's investment in Escorts will be 14.99%.

Kubota will also make an open offer to the public shareholders of Escorts to acquire up to 26% of the share capital. Current promoter group (Nanda Group) are not selling any shares of the company. The name of the company shall be changed to Escorts Kubota subject to regulatory approvals.