BSE Code: 500219
NSE Code: JISLJALEQS
Jain Irrigation Systems Ltd has submitted to BSE a copy of Clarification, With reference to news appeared in www.dsij.in dated June 11, 2019 quoting “Jain Irrigation mulls divesting pipes business”
To address the unsubstantiated rumours in the market and queries from various investor groups. Wish to state as under:
1. Company has not defaulted on any of its debt obligations. Company is growth oriented, profit making, dividend paying entity
2. Company has Debt to equity ratio of 1:11 and net worth of Rs.4561 crores (including CCD).
3. All operations of the company are ongoing. As on 1St April 2019 company had more than Rs.5000 crores orders in hand. It has total 33 manufacturing plants worldwide and 12000 associates.
Company has already taken decision to reduce the debt by Rs.2000 crores through corporate action as intimated earlier post board meeting on 30th May. Company is confident of executing on these plans.
The news-article referred on internet appears to be incorrect As clearly set out in the Company’s Board decision, the Company is in the process of identifying investment bankers, and following consultations and advice of investment bankers, the Company will decide the nature of the corporate actions it may take for fund-raising in order to reduce its long-term debt.
The share price of the Company was down by almost 13% on 10.06.2019 and up by 9.24% on 11.06.2019 and they believe it is speculative forces at play on both sides.
Shri Anil B. Jain, Vice Chairman and Managing Director of the Company to CNBC TV18 said
We have decided together that we will appoint bankers very soon to go through the process and wherever, whichever our business we can get, the faster reduction of the debt, we would go out and do it. But as of now, I can’t confirm or deny a specific transaction, for specific business. These things will happen, but direction is very clear. So two things are very clear 5000 crore of debts but no imminent debt falling due, there are no defaults none of that story is correct.
Stock Holding By Mutual Funds
Mutual Fund Holding[table id=5 /]
Detailed info: Hot represent increase in exposure in three consecutive months and cold represent decrease
PDF Link: Clarifies on news item
Source : BSE – www.bseindia.com[/vc_column_text][/vc_column][/vc_row]