Jain Irrigation shares surge 12% on subsidiarys merger news; stock up 32% in 2 days
Shares of Jain Irrigation Systems Limited surged nearly 12% after the company confirmed that it will merge its international business with Rivulis Pte Ltd, Temasek-backed firm
Shares of Jain Irrigation Systems Limited surged nearly 12% after the company confirmed that it will merge its international business with Rivulis Pte Ltd, Temasek-backed firm.
On Wednesday, shares of plastic products industrial manufacturer gained over 12% to Rs 43.90 per share on the BSE. The stock has closed higher by 20% to Rs 37.50 per share on the BSE on Tuesday.
The spike in the stock price comes after Jain Irrigation Systems Limited announced the merger of its international business with Temasek-backed Rivulis.
"On 21 June 2022, JITBV announced that JITBV, along with Jain (Israel) B.V., a wholly-owned subsidiary of JISL (together with JITBV, the "Sellers") entered into a share purchase agreement (the "SPA") with Rivulis Pte Ltd. (the "Buyer") for the sale and purchase of the entire issued share capital (the "Shares") of Gavish Control Systems Ltd., Jain America Holdings Inc. and NaanDan Jain Irrigation Ltd. and their respective subsidiaries (together, the "International Irrigation Business") comprising JISL's international irrigation business (the "Transaction")," read an exchange filing by Jain Irrigation Systems.
Upon Completion, a proportion of the proceeds of the Transaction will be utilised by JITBV to repay, among other things, the total amounts required to be repaid by JITBV to bondholders and lenders pursuant to the Notes and the First Lien Facility. With effect from Completion and such repayment, all security over the Shares (and other security) which is held in favour of such bondholders and lenders shall be released.
Jain Irrigation Systems Limited is an Indian multinational company with manufacturing plants in 30 locations across the globe. JISL, its subsidiaries and associates are engaged in providing solutions in agriculture, water and food sector through manufacturing of Micro Irrigation Systems, PVC Pipes, HDPE Pipes, Plastic Sheets, Agro Processed Products, Renewable Energy Solutions, Tissue Culture Plants, Financial Services, and other agricultural inputs since more than 34 years
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