At the 25th Annual General Meeting of the Company held on 21st September in Jalgaon, the Shareholders approved a dividend of 50%, i.e. Re. 1 per Ordinary Share and DVR Share of Rs 2 each.
The Shareholders also approved the issue of a total of 75,00,000 Equity Warrants(EW); 37,50,000 EW to Shri Anil Jain and 37,50,000 EW to Shri Atul Jain, promoter shareholders of the Company. Each warrant shall be convertible to one Equity Share of Rs 2 at a price of Rs. 86.30 per share, i.e. at a premium of approx 25% to the current market price.
25% of the exercise price amounting to Rs.161.8mn would be payable on allotment of the warrants while the balance 75% aggregating Rs.485.4mn would be payable at the time of exercising the option to convert the EWs into Equity Shares. The option is exercisable in one or more lots within a period of 18 months from the date of allotment.
Addressing the shareholders at the AGM, Founder Chairman Shri Bhavarlal Jain said that as a result of unprecedented challenges in FY 2012, including global financial crisis, changes in policy in several States and steep depreciation of the Rupee vis-a-vis the US Dollar, the Company was not able to sustain its performance. The Company is taking steps to suitably adapt its business model in order to overcome the various policy hurdles, he added.
Jain Irrigation enjoys the distinction of being the country’s No.1 rural Company with a business of $1 bn based on average exchange rate in the last FY 2012. It has achieved significant success in global markets, and is making a strong thrust in the African countries. Its food processing business is on a strong growth path and has shown healthy growth in exports, particularly to the UK and the USA. The Company’s solar energy business has registered a quantum leap of over 150% in a short period and has huge potential. The acquisition of a controlling stake in the high technology Swiss Company, Thomas Machines S.A. will enable the Company to maintain its leadership in ‘precision irrigation’ products.
The current year is a landmark year for the Company as it celebrates its Silver Jubilee.