DMD Advocates Represented Escorts Kubota On Proposed Divestment Of Railway Equipment Business Division

DMD Advocates Represented Escorts Kubota on Proposed Divestment of Railway Equipment Business Division

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 Crores (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 Senior Partner & Head of Corporate Rashi Dhir, along with Partner Saiyam Chaturvedi, Partner Tarinee Sudan, Principal Associate Shubhangi Bhatnagar, Senior Associate Priyanka Hazarika, Senior Associate Aishwarya Gupta, Associate Aditi Kumar, and Associate Shriya Sehgal. Associates Ela Bharti and Jasmine Brar assisted the transaction team with the due diligence exercise.