Tag: Jain Irrigation

Atul B Jain steps down as CFO of Jain Irrigation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Jain Irrigation on Friday said that the board of directors have accepted the resignation of Chief Financial Officer (CFO), Atul B Jain.

In an exchange filing, Jain Irrigation said, “the resignation of Shri Atul B Jain as Chief Financial Officer (CFO) of the Company is accepted by the Board of Directors of the Company, at its meeting held on February 11, 2023, effective from day new CFO joins.”

Last year in June, the Mumbai headquartered firm said that it would merge its international irrigation business with Rivulis, and the combined entity will have $750 million in revenues.

Also Read: Jain Irrigation shares up 17% as Street cheers merger of international irrigation business with Rivulus

Atul B Jain has been with Jain Irrigation since 1990. Founded in 1986, Jain Irrigation Systems Limited (JAIN) is an Indian multinational company with manufacturing plants in 29 locations across the globe.

According to Crunchbase, Jain Irrigation has raised $163.2 million via funding, to date.

The stocks of Jain Irrigation were trading at Rs 32.60 per share, up over 0.3 percent, at 1:34 pm.

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Jain Irrigation shares up 17% as Street cheers merger of international irrigation business with Rivulus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Jain Irrigation” isinid=”INE175A01038″ bseid=”500219″ nseid=”JISLJALEQS” sector=”Plastics” exchange=”nse”]

Shares of Jain Irrigation Systems rose as much as 17 percent in an otherwise weak market on Wednesday as investors cheered the firm’s international irrigation business merger with Rivulus, part of Singapore-based investment fund Temasek.

The combined entity will have $750 million in revenues if all approvals come in, creating the world’s second-biggest irrigation player.

Jain Irrigation’s stock soared about 20 percent on Tuesday. The stock has been gaining for the last two days and has surged over 34 percent during the period.

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The board/sub-committee met virtually and took on record the decision by the wholly-owned subsidiary, JITBV, to merge its international irrigation business with Rivulis, the company said in an exchange filing after market hours on Tuesday. “The company has agreed to sign two agreements with the merged company as follows at or before closing: a) license and supply agreement; and b) trade mark license agreement,” the filing stated.

The company said that the cash proceeds from the merger would be utilised for the reduction of consolidated debt of Jain Irrigation by around 45 percent, which includes all the restructured overseas bonds to the tune of about $225 million and complete debt of overseas operating companies comprising international irrigation business.

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“In terms of our 22 percent stake, we intend to retain and grow with the company. It is already a more than billion-dollar size company. In the next few years, this could get globally listed, and it would have more legs to continue to grow. And we’re going to continue to sell more out of India as well,” said Anil Jain, Vice-Chairman & Managing Director at Jain Irrigation Systems.

“We plan to grow based on cash flow and free cash flow generation. So, the idea is that between now and 2025, we should significantly deleverage the Indian balance sheet while continuing to grow as the unique company involved in the complete agri value chain,” Jain said.

The transaction is subject to required regulatory approvals and other customary closing conditions and is expected to be completed by early 2023.

Goldman Sachs acted as the financial advisor, Baker McKenzie acted as the legal advisor, and PWC acted as tax and diligence advisor to JITBV for the transaction.

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Over 340 stocks from BSE500 underperformed indices in the first half of 2019

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Over 340 stocks from the BSE500 index have underperformed the benchmark index, which rose over 9 percent, in the first half of 2019.

Of this, 280 stocks gave negative returns as market sentiment remains exposed to the slowdown in the economy, concerns around liquidity woes for non-banking finance companies (NBFCs) and a slowdown in consumption on the domestic front. Political uncertainty due to the general elections in May 2019 also impacted sentiment.

Reliance Communications (RCom), Reliance Power, Reliance Infra, Jet Airways, Dewan Housing, Reliance Capital, Jain Irrigation, Jaiprakash Associate, HEG, Eveready Industries and Graphite India fell over 50 percent this year on increase in loan defaults and pledged shares.

PC Jeweller, Central Bank of India, Yes Bank, Glenmark Pharma, Venkys, IDBI Bank, IFCI, Shipping Corporation of India, Varroc Engineering, were some of the other stocks that slip between 30-50 percent in 2019.

Debt-ridden RCom tanked over 90 percent in the first half of this year. The company owes Rs 57,382.5 crore to debtors, including new entities, with the Interim Resolution Professional (IRP) admitting claims worth Rs 49,223.88 crore, the company said in a filing. In Q4, it reported a consolidated net loss of Rs 7,767 crore as against a net loss of Rs 19,776 crore in the corresponding period of 2017-18.

Dewan Housing Finance Corporation Ltd (DHFL) fell 70 percent on loan defaults resulting in rating downgrades. The non-banking finance company has been facing liquidity crisis and has recently defaulted on its repayment obligations. DHFL earlier this week said it will shortly divest its full stakes in subsidiary firms DHFL Pramerica Asset Managers and DHFL Pramerica Trustees.

Grounded Jet Airways declined 75 percent after the airline went bankrupt and the lessors took away most of its operational aircraft. The Naresh Goyal-led company grounded all its fleet and ended operations on April 17.

Among gainers, 33 BSE500 stocks rose over 30 percent in the first six months of this year. Aavas Financiers rose over 75 percent, while Adani Gas was up 68 percent and DCM Shriram added 67 percent. Godrej Properties, Just Dial, Info Edge, SRF, Manappuram Finance, AstraZeneca Pharma, Titan, Reliance Nippon AMC, Bajaj Finance, HDFC AMC, SpiceJet and Oberoi Realty also gained between 35-55 percent.

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Closing Bell: Sensex ends marginally higher, Nifty unchanged; Indiabulls Housing down 8%, Tata Steel up 5%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian benchmark indices ended marginally higher amid volatile trade on Wednesday, following Asian shares on hopes of US Federal Reserve easing its policy stance.

Meanwhile, the resumption of trade talks between Washington and Beijing also boosted sentiment. Investors hoped that the Fed would follow the lead of the European Central Bank (ECB) at its policy meeting later in the day after the ECB’s Mario Draghi hinted at easing policy if inflation fails to accelerate.

The Sensex ended 66 points higher at 39,113, while the broader Nifty50 index settled unchanged at 11,691. Broader markets underperformed benchmark indices with the Nifty Midcap and the Nifty Smallcap indices falling 1 percent and 1.8 percent, respectively.

Tata Steel, Zee, Kotak Bank, NTPC and Titan were among the top gainers on the Nifty50, whereas Indiabulls Housing, Yes Bank, UPL, Adani Ports and IndusInd Bank led the losses.

Sectoral indices ended mixed during the day. The Nifty Realty index gained the most, up 1.2 percent followed by the Nifty Media (up 0.8 percent), Nifty Metal (up 0.6 percent) and Nifty Fin Services (up 0.5 percent). Among losers, the Nifty Pharma fell 1.6 percent, while the Nifty Auto lost 1.1 percent and the Nifty PSU Bank declined 0.8 percent for the day.

Shares of Jain Irrigation Systems tanked 31 percent after India Ratings and Research downgraded the company’s Long-Term Issuer Rating to ‘IND BBB’ from ‘IND A-’.

Jet Airways’ shares continued their bear run, falling 18 percent, ahead of its tribunal hearing after its lenders sought for the company’s bankruptcy to recover their dues.

IRB Infrastructure Developers plunged 10.7 percent over a media report indicating that National Highways Authority of India (NHAI) is exploring a new developer for Mumbai-Pune Express Highway.

Globally, MSCI’s global equity index rose 0.4 percent, adding to Tuesday’s one percent gain, as Asian shares excluding Japan followed the lead of their European and US counterparts to jump almost 2 percent – their biggest one-day rally since January. Tokyo and Shanghai too climbed almost 2 percent while Australia’s main bourse hit an 11-year high.

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Closing Bell: Sensex, Nifty end marginally higher led by banks, IT stocks; Jet Airways crashes 41%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian benchmark indices end with minor gains on Tuesday after a volatile session, led by IT and banking stocks ahead of the US Federal Reserve’s two-day meet later in the day.

The Fed is expected to leave interest rates unchanged after its policy meeting this week, even as US President Donald Trump pressed fresh demands for a rate cut.

Asian markets were wobbly on investor caution ahead of the meet, with the MSCI’s broadest index of Asia-Pacific shares outside Japan moving up 0.2 percent.

The Sensex ended 85 points higher at 39,046, while the broader Nifty50 index added 19 points to end at 11,691. Broader markets underperformed benchmark indices with the Nifty Midcap and the Nifty Smallcap indices falling 0.2 percent and 0.3 percent, respectively.

Vedanta, BPCL, Coal India, ICICI Bank and PowerGrid were among the top gainers on the Nifty50, whereas Indiabulls Housing, YES Bank, Hindalco, Asian Paints, and Sun Pharma led the losses.

Sectoral indices ended mixed during the day. The Nifty IT index gained the most, up 0.6 percent followed by the Nifty Metal, up 0.5 percent. All banking and financial indices also gained during the day. Among losers, the Nifty Pharma fell 0.7 percent, while the Nifty Auto lost 0.5 percent and the Nifty FMCG declined 0.4 percent for the day.

The Nifty FMCG index fell 0.4 after New Delhi slapped tariffs on 28 US goods, including almonds, apples, and walnuts from Sunday. Dabur, Emami and Colgate Palmolive were down in the range of 1.3-3.5 percent.

Jet Airways slumped 41 percent, extending their losing streak to nine days after lenders sought bankruptcy for the airline in the last ditch effort to recover some of their dues. The stock witnessed a free-fall, eroding Rs 2,800 crore in market capitalisation in the last six months.

HDFC Asset Management Company tanked 6.2 percent after the company took Essel Group exposure on its books. It has offered exits to investors of some fixed-maturity plans (FMPs) impacted by the Essel Group exposure.

Shares of Jain Irrigation cracked 20 percent as investors remained concerned on the liquidity status of the company after promoters pledged 3.5 million shares between Jun 7-11.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow