Jain Irrigation hits new high

Jain Irrigation Systems is amongst the top gainers on the BSE currently. The stock has hit a new 52-week high today at Rs.109.55 and currently remains some 6.5% up at Rs.106 levels.

The market is very happy with the news that it has acquired 80% stake in US companies, Agri Valley and Irrigation Design and Construction. It expects to complete the acquisition in two years.

This is being viewed as a very positive acquisition for Jain as it will help the company get a direct access to the US farmers and bring latest technological solutions. Both the companies are doing well, having profitable businesses and margins higher than Jain. US will be the second largest geographical market after the acquisition.

The funding for the acquisition is to be done partly via debt and equity. The debt-to-equity for the current fiscal is expected to be around 1.