BENGALURU, Nov 18 (Reuters) - Japan"s Kubota Corp (6326.T) will raise its stake in tractor maker Escorts Ltd (ESCO.NS) to as much as 44.8%, the companies said on Thursday, sending shares of the Indian firm to a record high. Kubota, which currently holds a 9.09% stake in Escorts, will up its stake via subscription to a third-party preferential share allotment, the Japanese tractor and other agriculture machinery maker said. Escorts approved raising funds of up to 18.73 billion rupees($252.66 million) via issue of 9.4 million shares at 2,000 rupees per share to Kubota, at a 23% premium to Wednesday"s closing price. Shares of Escorts rallied to a record high of 1,824.95 rupees after the announcement. Osaka-based Kubota expects to raise its stake in Escorts to as much as 53.5% and become a joint promoter. Escorts said its Chairman and Managing Director Nikhil Nanda could get a potential board seat at Kubota"s European business holding firm. It was also evaluating a potential merger of Kubota"s India unit, Escorts" finance arm and its Kubota joint venture with the parent company, Escorts said, adding that it was considering a name change to reflect Kubota in its corporate identity. India"s best known billionaire investor Rakesh Jhunjhunwala also owned 4.85% stake in Escorts, as of Sept. 30. The Haryana-based agro machinery maker aims to create one of the largest Indo-Japan agriculture collaboration in the farm equipment sector with Kubota, it added in a statement. Escorts added that its current promoter group, the Nanda family, is not selling any shares and will continue to be fully invested in the firm. ($1 = 74.1300 Indian rupees)