Jain Irrigation Systems rose 2.17% to Rs 122.55 at 9:47 IST on BSE after the company's subsidiary, through its multi generation wholly owned subsidiary in Belgium acquired 100% stake in INNOVAFOOD N.V. Belgium and its affiliate companies.
The announcement was made after market hours yesterday, 26 February 2018.Meanwhile, the S&P BSE Sensex was up 3.49 points, or 0.01% to 34,449.24. The S&P BSE Mid-Cap index was down 26.68 points, or 0.16% to 16,658.19, underperforming the Sensex.
On the BSE, 1.86 lakh shares were traded in the counter so far, compared with average daily volumes of 16.29 lakh shares in the past one quarter. The stock had hit a high of Rs 123.15 and a low of Rs 121.20 so far during the day. The stock had hit a 52-week high of Rs 150.40 on 29 January 2018. The stock had hit a 52-week low of Rs 82.80 on 24 May 2017.
The stock has gained 8.74% in three sessions to its ruling price, from a close of Rs 112.70 on 22 February 2018.
The stock had underperformed the market over the past one month till 26 February 2018, falling 17.48% compared with the Sensex's 4.45% drop. The scrip had, however, outperformed the market in past one quarter, gaining 6.1% as against Sensex's 2.28% rise. The scrip had also outperformed the market in past one year, gaining 28.01% as against Sensex's 19.22% rise.
The mid-cap company has equity capital of Rs 99.27 crore. Face value per share is Rs 2.
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Jain Irrigation Systems said that its subsidiary, Jain Farm Fresh Foods, India (JFFFL), through its multi generation wholly owned subsidiary in Belgium has acquired 100% stake in INNOVAFOOD N.V. Belgium and its affiliate companies.
Founded in year 2000, Innovafood is a leading importer, stockist and distributor of food ingredients and has become one of the leading player in the dehydrated vegetables, spices and other food ingredients in Belgium, The Netherlands, France and other neighbouring countries.
Innovafood has developed an unparalleled, high quality and long-term supply chain and supplier relationships in India, China, USA, EU, Morocco, Indonesia and Uzbekistan. The company also enjoys a very strong and long-term customer loyalty in the markets it operates in. It offers a large basket of key food ingredients of dehydrated vegetables, herbs, spices and spice extracts, freeze dried products, natural food colours, bio products, etc.
Large customer base includes food processing industry, food blenders and re-packers, etc. Innovafood has been exclusive distributor of Jain Farm Fresh Foods for last 15 years in BENELUX (Belgium, The Netherlands and Luxemburg) and France markets for some of the key food ingredients supplied by Jain Farm Fresh Foods, India.
This acquisition aligns with another similar strategic investment in the UK by JFFFL into a similar business covering British Isles 7 years with very impressive performance till date. This acquisition will help Jain Farm Fresh Foods to get one step closer to the market, have direct presence in large food ingredients market, bring cost efficiencies by optimizing supply chain and provide market access and further value addition opportunities in food ingredients market directly.
No government or regulatory approvals are required to complete this transaction.
Jain Irrigation Systems' consolidated net profit jumped 868.1% to Rs 67.28 crore on 30.8% rise in net sales to Rs 1889.63 crore in Q3 December 2017 over Q3 December 2016.
Jain Irrigation Systems is engaged in 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 last 34 years.
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