Financial Daily from THE HINDU group of publications
Wednesday, Dec 03, 2003
Financial Daily from THE HINDU group of publications Wednesday, Dec 03, 2003 |
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Markets
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Stock Markets Jain Irrigation promoters to divest 6.26 pc stake — Reinvest proceeds in pref issue Our Bureau
Mumbai , Dec. 2 JAIN Irrigation Systemshas informed the stock exchanges that the promoters of the company plans to divest around 6.26 per cent (around 30 lakh shares) of their holding in the open market. The promoters will reinvest the sale proceeds into the proposed preferential issue. Currently promoters' holding in the company is 34.41 per cent. Last month, the board of directors of the company had decided to make a preferential allotment of fully convertible debentures aggregating Rs 18.75 crore to the promoters of the company. This is the third instance in a couple of months that the promoters are selling their stake in the open market and subsequently subscribing to shares and debentures made to them on preferential basis. Pantaloon Retail and Television 18 promoters had also done similar transaction. In today's trading, the stock price of the drip irrigation company gained 8.12 per cent at Rs 87.25. Based on today's closing, the sale proceeds of 30 lakh shares would be valued at Rs 26 crore. Out of this, the promoters would reinvest Rs 18.75 crore in the company by subscribing to the preferential issue. Brokers said these shares are likely to be picked up by institutional investors, as the future outlook of the company looks bright due to the good order position. Recently the company was awarded approximately 36,000 hectares of area out of possible 1,35,000 hectares of area in phase one of Andhra Pradesh Micro Irrigation Project. The company was awarded the highest shares in the first phase of the project among the various bidders. The value of the order to the company will be in the range of Rs 140-150 crore subject to cropping pattern and component mix. The time frame for completion of phase one is about five months. The company is expected to bag more orders in the second phase also, brokers said.
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