Escorts to raise $ 100mln via QIP route

New Delhi, Jan 28 (UNI) Escorts Ltd will raise 100 million dollars through issue of equity-linked instrument via Qualified Institutional Placement (QIP).

The money will be utilised to reduce interest cost and improving profits, providing capital for growth and introducing new products for improving market share.

''There is also a need for fund balancing the capital investment.

This enhancement of capital is at an opportune time to gain more momentum in the business, as the capital is required to support the robust plans of sales growth and profit improvement,'' the company said.

With additional capital it expects improved profits through interest cost reduction by more than Rs 20 crore in the current fiscal year.

While the company has already begun road shows and received board of directors' nod, the shareholders' approval for the issue of the securities to QIBs is likely to be obtained at the Annual General Meeting on February 24.

It is expected that the subscription of capital will happen in early March 2007.

Escorts is a leading manufacturer and supplier of agri machinery products, auto suspension and ancillary products and railway equipment.

UNI