Jain Irrigation strengthens on plan to divest 30-35% stake in food-processing business

31 Mar 2014

Jain Irrigation Systems is currently trading at Rs. 65.50, up by 1.05 points or 1.63 % from its previous closing of Rs. 64.45 on the BSE.

The scrip opened at Rs. 66.00 and has touched a high and low of Rs. 67.05 and Rs. 65.10 respectively. So far 548037 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 75.10 on 27-Dec-2013 and a 52 week low of Rs. 46.10 on 01-Aug-2013.

Last one week high and low of the scrip stood at Rs. 65.00 and Rs. 58.30 respectively. The current market cap of the company is Rs. 2926.81 crore.

The promoters holding in the company stood at 27.46 % while Institutions and Non-Institutions held 54.00 % and 18.03 % respectively.

In a bid to cut debt and boost growth, Jain Irrigation is planning to divest 30-35% stake in the 10-year-old food-processing unit to strategic investors. The company is expected to fetch around Rs 610 crore from the said stake sale.

The money generated from the stake sale may be used to retire part of the company’s substantial debt amounting to Rs 2,924 crore. The company is likely to transfer its food-processing business to a separate company as part of the exercise.

Jain Irrigation’s food-processing facility in Jalgaon, Maharashtra, produces dehydrated onion and vegetable products, aseptic fruit purees, concentrates, clarified juices and frozen products marketed under the brand name FarmFresh.

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