Escorts Kubota's shares experienced a drop of more than 6% after announcing the sale of its railway equipment business to Sona BLW Precision Forgings for Rs 1,600 crore. The company explained that this decision is in line with its strategic focus on the agriculture and construction equipment sectors, with the aim of simplifying operations and improving capital allocation.

This move is part of a broader strategy to increase efficiency and scale within its core business areas, as the company shifts its attention away from the railway equipment division.

At 12:10 PM, Escorts Kubota's shares were trading at Rs 3,459.65, reflecting a decline of 6.5% on the National Stock Exchange.