Jain Irrigation Systems (JISL) today said it has got its board's nod for raising $150 million (Rs 700 crore) to be invested in various business activities, for entering into financial services and the power sector.
The company also announced that its board has also decided to issue bonus shares with differential voting rights.
"...Board has approved the equity fund raising proposal to raise funds up to $150 million, subject to shareholder's approval," JISL said in a statement.
The company said its board has given the nod for setting up a new company and intends to apply to the Reserve Bank of India for registering as non-banking financial company (NBFC).
"...JSIL has decided to promote the NBFC with the overall objective of serving the small farmer and rural constituency... This will help JISL to reduce receivables in the balance sheet and significantly improve working capital cycle for the micro-irrigation business," the statement said.
The company said that it has also decided to transfer the solar/renewable energy division into a wholly-owned subsidiary.
"The board also approved modification of the object clause of the company to suit the focused expansion in the solar/renewable business segment," the company said.
JISL also announced that its board has also recommended to shareholders issuance of bonus equity shares with differential voting rights (DVR Equity Shares) in the ratio of one DVR share for every 20 ordinary shares of the company.
"10 DVR equity shares shall carry voting right equivalent to one ordinary share," the company said.
The Mumbai head-quartered company today reported a 24.5 per cent jump in its standalone net profit at Rs 71.47 crore for the quarter ended December 31, 2010.
Net sales of the company grew to Rs 693.26 crore during the October-December quarter as compared to Rs 630.87 crore in the year-ago period, the company said.
Commenting on the result JISL Managing Director Anil Jain said, "Our company has delivered overall good operating performance during this quarter despite an unusual extended monsoon resulting in consistent wet session for major part of this period."
