News
DMD Advocates is Representing Escorts Kubota Limited in the Proposed Divestment of its Railway Equipment Business Division
24 Oct 2024
- DMD Advocates
- Deal Reporting
DMD Advocates is representing Escorts Kubota Limited (EKL) in the proposed divestment of its Railway Equipment Business Division (RED) to Sona BLW Precision Forgings Limited (Sona Comstar), for a lump sum cash consideration of INR 1,600 Crore (Indian Rupees One Thousand and Six Hundred Crores Only).
RED is one of the railway component suppliers in India for products like brakes, couplers, suspension systems, and friction and rubber products, and few new products in the pipeline, including HVAC systems, electrical control panels, vacuum evacuation systems, and automatic plug doors. This divestment aligns with EKL’s strategic focus on the agricultural and construction equipment sectors. The transaction is subject to approvals and adjustments.
The transaction is being led by Rashi Dhir (Senior Partner & Head of Corporate) along with Saiyam Chaturvedi (Partner), Tarinee Sudan (Partner), Shubhangi Bhatnagar (Principal Associate), Priyanka Hazarika (Senior Associate), Aishwarya Gupta (Senior Associate), Aditi Kumar (Associate), and Shriya Sehgal (Associate). Ela Bharti (Associate) and Jasmine Brar (Associate) assisted the transaction team with the due diligence exercise.
