The Phoenix Mills – CPPI invests in Phoenix Rise projectPHOENIXLTD - 2372 Change: 13.20 (0.56 %)
News: The Phoenix Mills (PML) and Canada Pension Plan Investment Board (CPP) have entered into and executed definitive agreements wherein the latter will invest Rs.787 crore in first tranche for 35.9% stake in Phoenix Rise Project at lower Parel. Overall, up to Rs.1,350 crore has been committed by CPP Investments as it it is envisaged that CPP investments may further increase its stake from 35.90% to 49.00% in the project.
Views: Escorts is a debt free company with cash surplus of ~Rs.3,000 crore on its books as of March 2021. Raising of funds is most likely to be a replica of prior transaction with Kubota Corporation (Japan) further increasing the stake in the company through fresh issue of shares and similar shares being extinguished from the treasury shares that the company possesses. As on date, Kubota’s stake in the company is at ~10% with treasury shares amounting to ~17.5% with the company. Kubota increasing stake in the company is a positive development for Escorts and is likely to broaden its scope of operations in both domestic as well as global markets.