Jain Irrigation Systems rose 1.38% to Rs 58.90 at 14:21 IST on BSE after the company said it has allotted 75 lakh equity shares at an issue price of Rs 86.30 per share upon conversion of share warrants by the promoter group entities.
The announcement was made after market hours on Thursday, 20 March 2014.
Meanwhile, the BSE Sensex was up 18.62 points or 0.09% at 21,758.71.
On BSE, so far 4.39 lakh shares were traded in the counter as average daily volume of 3.08 lakh shares in the past one quarter.
The stock hit a high of Rs 60.25 and a low of Rs 58.60 so far during the day. The stock had hit a 52-week high of Rs 75.10 on 27 December 2013. The stock had hit a 52-week low of Rs 46.10 on 1 August 2013.
The stock had underperformed the market over the past one month till 20 March 2014, sliding 2.68% compared with the Sensex's 5.86% rise. The scrip had also underperformed the market in past one quarter, declining 14.12% as against Sensex's 3.13% rise.
The company has equity capital of Rs 90.98 crore. Face value per share is Rs 2.
Jain Irrigation Systems said that the Securities Issuance Committee of Directors met on Thursday, 20 March 2014 and allotted 75 lakh ordinary equity shares of Rs 2 each at a issue price (including premium) of Rs 86.30 per share arising out of exercise of option attached to 75 lakh equity warrants of Rs 86.30 each issued on 21 September 2012. The ordinary shares allotted upon conversion of share warrants shall rank paripassu with the existing equity shares of the company in all respects, Jain Irrigation Systems said.
It may be recalled that Jain Irrigation Systems had on 21 September 2012 allotted 75 lakh equity warrants of Rs 86.30 each to the promoter group entities viz. Mr. Anil B Jain and Mr. Atul B Jain. A sum of 25% of the exercise price i.e. Rs 21.575 per warrant aggregating Rs 16.18 crore was paid by the promoter entities at the time of allotment of equity warrants. The balance 75% shall be payable by them at the time of exercise of option to convert the equity warrants to ordinary equity shares, Jain Irrigation said at that time.
Jain Irrigation Systems reported a consolidated net profit of Rs 25.88 crore in Q3 December 2013 as against net loss of Rs 46.95 crore in Q3 December 2012. Net sales rose 27% to Rs 1352.37 crore in Q3 December 2013 over Q3 December 2012.
Jain Irrigation is a diversified company with product portfolio encompassing irrigation product, piping products, plastic sheets, dehydrated foods, fruit puree, juice concentrates and solar energy systems. Jain Irrigation has pioneered drip irrigation for small farmers in India and has a major market share in one of the fastest growing irrigation markets in the world and is also the second largest drip irrigation company in the world.
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