IFC to back capex of Jain Irrigation
The International Finance Corporation (IFC) is looking to back Jain Irrigation Systems Limited (JISL), an integrated agribusiness player, in its capital expenditure plan of around $50 million. IFC proposed an investment of up to $40 million equivalent in rupee-denominated debt to partly finance this capital expenditure.
The International Finance Corporation (IFC) is looking to back Jain Irrigation Systems Limited (JISL), an integrated agribusiness player, in its capital expenditure plan of around $50 million.
IFC proposes an investment of up to $40 million equivalent in rupee-denominated debt to partly finance this capital expenditure in JISL.
The proposed IFC financing will support JISL’s operations in India.
The capex programme will spread over for the next 12 months including capital expenditure for expansion of the company’s operations in micro irrigation systems (MIS), plastic pipes, tissue culture and solar products in India and funding future growth.
The World Bank’s investment arm said that in an industry subject to variations in profitability due to weather patterns and fluctuations in productivity, IFC would provide long-term capital which is not easily available.
JISL is one of India’s largest integrated agribusiness players, with operations in MIS, plastic pipes and sheets, dehydrated vegetables, processed fruits and other smaller businesses including tissue culture, agritech solutions and green energy.
Headquartered in Maharashtra, JISL is India’s leader in MIS and the second largest globally; it is also the largest manufacturer of plastic pipes in India. The company had revenues of approximately $1 billion for the last financial year ended March 31, 2017, and had a market capitalisation of approximately $930 million as of February 2, 2018.
JISL is listed on the National Stock Exchange and the Bombay Stock Exchange in India. The sponsors, the Jain family, currently own approximately 28.5 per cent of the company’s equity shares as of December 31, 2017. The Jain family has been involved in agriculture and plastics businesses since the 1960s.
Institutional investors own approximately 43.1 per cent and the rest of the shareholding is held by other public shareholders.