Financial Daily from THE HINDU group of publications
Thursday, Nov 20, 2003
Financial Daily from THE HINDU group of publications Thursday, Nov 20, 2003 |
|
|
|
|
|
Corporate
-
Preferential Allotments Jain Irrigation to make pref offer to promoters, Aqua Our Bureau
Mumbai , Nov. 19 JAIN Irrigation Systems Ltd (JISL) is making a preferential allotment in which 50 per cent will be offered to the promoters of the company and 50 per cent to the US-based Aqua International at a price that could range from Rs 77 to Rs 100 per share, a company official said. With this allotment, Jain Irrigation's share capital will rise to Rs 53.7 crore from the current level of Rs 47.8 crore. However, this allotment is not likely to alter the shareholding of Aqua and the Jains. Currently, Aqua holds a stake of 49.4 per cent while Jains, the promoters of the company, hold 35 per cent in the company. The shareholding of Jains may go up to 36 per cent, the official said. The money that will come to the company will be used to meet the working capital requirement. This is the second preferential allotment being made. Jain Irrigation made an earlier preferential allotment to Aqua at a price of Rs 77 per share. Aqua is a US-based private equity fund. The company's board is due to meet on November 24, 2003, to finalise this issue. It is looking at a 40 per cent growth in its turnover for the current fiscal at Rs 450 crore. Recently, the company won a part of the Rs 1,200-crore Andhra Pradesh Government project on drip irrigation. The contract is split among seven vendors, Jain Irrigation being one of them. The project involves installing drip and sprinkler irrigation on 2,50,000 hectares in Andhra Pradesh. The payment terms are finalised as 10 per cent mobilisation advance, 85 per cent progress payments and 5 per cent retention money to be paid after a period of five years from the date of installation. In the first phase of the order, the company has been awarded 3,60,000 hectares out of the possible 1,35,000 hectares. The value of this order to the company will be in the range of Rs 140-150 crore. The award for the second phase of the project will be finalised after the performance of first phase is evaluated. The timeframe for completion of phase one is about 5 months.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|