Jain Irrigation gets RBI nod for launch of NBFC, stock up 5%

Jain Irrigation Systems has soared 5.3% to Rs 92.35, after the company said it has obtained a regulatory approval from the Reserve Bank of India to launch the new non-banking financial company (NBFC).

“The new joint venture is already incorporated in the name and style of ''Sustainable Agro commercial Finance'' to be commonly recognized by its acronym; SAFL (pronounced SAFAL) will be a non deposit taking NBFC,” a leading drip and micro irrigation company said in a filing.

“The new NBFC will focus its activities on farm and farmer only and operate in the rural & semi urban geographies of India,” it added. The company is starting an NBFC in partnership with International Finance Corporation.

The trading volumes on the counter more than double, with a combined 7.53 million shares have already changed hands so far, against an average 3.3 million shares that were traded daily in past two weeks.