Jain Irrigation Systems has rallied 11% to Rs 79.85 in an otherwise subdued market on the back of heavy volumes on the bourses. The stock opened at Rs 72.10 and touched a 52-week high of Rs 80.55 on the National Stock Exchange (NSE).
At 1115 hours, a combined 8.04 million shares have already changed hands as against an average around 3 million shares that were traded daily in the past two weeks on the NSE and BSE.
In the past one month, the stock of micro irrigation company has rallied nearly 37% from Rs 58.50, on reports that the company is looking to sell a stake in its food-processing business to private equity funds as it seeks to cut debt and boost growth.The benchmark CNX Nifty has gained 3% during the same period.
Seeking to clarifiy the news reports, Jain Irrigation Systems said it has been generally exploring options to pare the debt for some time now and one of the options being explored is induction of equity investment in the company’s food processing business.
However, as of date, all discussions are preliminary and non-binding. There have been no binding agreements signed or management decisions taken for the sale of stake in our company’s food processing unit. Hence the news article is pre-mature and at this stage incorrect and inaccurate, it added.
