Escorts Kubota said on Wednesday that the company has approved the proposal to set up a wholly owned company as an NBFC with an authorised capital of Rs 700 crore, to finance the Company’s Products/ Customers, as per a regulatory filing.
The Board has approved the infusion of capital up to Rs 200 crore as and when required as per the business plan of the proposed company.
Since the proposed company will be registered as an NBFC, approval from the Ministry of Corporate Affairs, Reserve Bank of India (RBI) or any other Statutory Authority, if any will be obtained in due course, the notification said. The indicative timelines for completion are expected by July 2024.