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Last Updated : Jun 20, 2019 11:01 AM IST | Source: Moneycontrol.com

Jain Irrigation rebounds after management clarifications, surges 9%

Promoters held 28.65 percent stake in Jain Irrigation, of which 48.41 percent was pledged against loans

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Jain Irrigation Systems shares rallied nearly 9 percent intraday on June 20 after the company clarified on its recent share fall and pledged shares.

"We wish to reassure our investors and stakeholders that company is moving forward with normal operations and is confident of fulfilling it’s agenda while making serious efforts to deleverage its balance sheet," the irrigation systems manufacturer said in its BSE filing.

"Unabated and unprecedented significant fall in share price is not the result of anything linked to company’s current or expected performance but may be linked to exit of company’s stock from F&O and/or negative sentiments born out of speculative operations fuelled by rumours," it added.

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On June 19, it crashed 28 percent amid worries over its pledged shares. On June 20 intraday, it was down 17 percent before showing a sharp recovery.

Jain Irrigation said management remained committed to owning and running all major business based on the intrinsic value that has been created while pursuing deleveraging to reduce debt by Rs 2,000 crore as conveyed earlier.

Any new investment infusion either by private equity / sovereign or other investors in one or more divisions is being done is not to address any immediate shortfall in debt, it added.

The company said deleveraging is part of a well thought out strategy to create a much better balance sheet. "However, one must note that there is no pressure while servicing existing debt as repayments are spread out over the next 5-6 years and aligned with expected normal cash-flows based on company’s growth plan," it added.

Promoters have informed the company that they are in touch with all their lenders for pledged shares and working on solutions for the current scenario, it added.

Promoters held 28.65 percent stake in Jain Irrigation, of which 48.41 percent was pledged against loans.

The stock recovered 31 percent from its day's low of Rs 16.30 (the 52-week low) to hit an intraday high of Rs 21.40. It was quoting at Rs 21.05, up Rs 1.35, or 6.85 percent on the BSE at 1036 hours IST.

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First Published on Jun 20, 2019 11:01 am
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