Dear All,
Forwarding you the Event Update on Jain Irrigation.
Jain Irrigation issues warrants to promoter
Jain irrigation plans to issue 6.1mn Equity warrants to promoter group at a price of Rs228. On full conversion this would increase equity capital by Rs1.2cr to Rs77.4cr from current base of Rs76.2cr. with this promoter holding is likely to increase by 1.1% to 31.9% from 30.8% at the end of 3QFY2011.
During 3QFY2011 earnings concall management had indicated its will to raise fund to the tune of US$150mn (~Rs675cr). Raised funds would be used in 1) reduction of debt from balance sheet 2) equity contribution towards NBFC start up and 3) regular capex pertaining to MIS and other divisions. Off lately stock had witness decline from Rs215 to current level of Rs185, hence we believe the current issue of warrant would act as benchmark for future dilution. At yesterday’s closing price of Rs185, stock trades at 23x and 16x its FY11 and FY12 EPS, which is near to its fair valuation hence we maintain our Neutral view on the stock.
If you have any further queries, feel free to call us on 022 39500777 or mail us at advisory@angelbroking.com
With best regards,
Fundamental Advisory Desk
Angel Broking
Akruti Star,5th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93.
Call : (91) (022) 39500777
Website : www.angelbroking.com
Disclaimer: Ours is an advisory role. The final decision and consequences based on our information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.
No comments:
Post a Comment