Company to incorporate an NBFC to aid customers in financing of its productsESCORTS - 3196 Change: -33.25 (-1.03 %)
News: In a regulatory filing, the company has informed that its board of directors have approved the proposal to incorporate a Wholly Owned Subsidiary Company as a Non-Banking Financial Company, to finance the Company’s Products/ Customers. The proposed company shall be incorporated with the Authorized Capital of ₹ 700 Crore and the Board has approved the initial infusion of ₹ 200 Crore.
Views: Having a captive financing arm certainly has an edge and is a positive development for the company. We believe this move to aid company volumes in the tractor space going forward. We expect the operations of NBFC to start operations in about 12-18 months.