In the past two trading days, the stock has zoomed 40 per cent from a level of Rs 31.25 on Monday. At 09:29 AM, it was trading 14 per cent higher at Rs 42.75, as compared to 0.94 per cent decline in the S&P BSE Sensex. Trading volumes on the counter jumped over four-fold with a combined 1.8 million shares having changed hands on the NSE and BSE.
Jain International Trading B.V., a wholly owned subsidiary of Jain Irrigation, and Rivulis (part of Singapore based Temasek group) have entered into definitive transaction agreements.
“This transaction, once closed, will result into substantial reduction in the Company’s consolidated debt approximately by 45 per cent (Rs 2,700 crore) and reduce the interest cost. This will enable the Company to refocus its efforts to grow business in India, while further deleveraging the Standalone India balance sheet,” JISL said in a press release. READ HERE
Jain International Business will continue to hold stake of around 22 per cent in the merged entity with Temasek holding the balance around 78 per cent. JISL will also get to release its corporate guarantee given by Jain Irrigation India of Rs 2,275 crore to bondholders & IIB lenders, the company said.
JISL will have a long-term supply agreement with the merged entity, which would drive revenues and profits, it added.
Going forward JISL will focus on further improving the India business to drive higher growth and margin in one of the fastest growing irrigation markets in the world, and eventually aim to reduce debt on the standalone Indian business balance sheet as well – as agreed with the lenders in the recent restructuring, the company said.
JISL, its subsidiaries and associates, are engaged in providing solutions in agriculture, water and food sector through manufacturing of Micro Irrigation Systems, PVC Pipes, HDPE Pipes, Plastic Sheets, Agro Processed Products, Renewable Energy Solutions, Tissue Culture Plants, Financial Services, and other agricultural inputs.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Education News Click Here
For the latest news and updates, follow us on Google News.
