Jain Irrigation Systems DVR

Alchemist · #1 30th November 2011, 12:29 PM

The DVR of Jain Irrigation Systems has listed today.

Earlier, the company had issued DVR (Differential Voting Rights) shares as bonus shares to existing shareholders.

The bonus ratio was 1:20 (1 DVR share for every 20 ordinary existing shares).

10 DVR shares have the same voting right as 1 ordinary share.

Jain Irrigation Systems is the 4th NSE-listed company to issue DVR shares.

Tata Motors, Pantaloon Retail and Gujarat NRE Coke are other companies with listed DVR shares.

magnet · #2 19th December 2011, 09:30 AM

Why is the common shares and DVR shares both falling so badly with no respite?

I bought the shares at 160 levels thinking it'll bottom out, but now need to fall in averaging trap.

Alchemist · #3 19th December 2011, 09:50 AM

Jain Irrigation has some issues - foreign currency loans, minor fire at one of its units, high receivables etc.

The company will report significant MTM losses because of its foreign currency loans.

Also, state governments are delaying payments to the company for various reasons.

Right now, I am still not sure if the fall in the stock price is justified or not.

magnet · #4 19th December 2011, 07:49 PM

Please do as I have to average it out.

Also wanted to know is dividend ratio for this DVR same as the ordinary stock?

I'll better get that instead of ordinary as I also got a bonus share of DVR.

Alchemist · #5 20th December 2011, 09:31 AM

Quote:

Originally Posted by magnet

Please do as I have to average it out.

Also wanted to know is dividend ratio for this DVR same as the ordinary stock?

I'll better get that instead of ordinary as I also got a bonus share of DVR.

Both the ordinary and DVR shares will get the same dividend.

magnet · #6 20th December 2011, 09:41 AM

Quote:

Originally Posted by Alchemist

Both the ordinary and DVR shares will get the same dividend.

Thanks.

Tulsian's take taken from moneycontrol:

Where is Jain Irrigation and Sintex heading? Tulsian tells - CNBC-TV18 -

Quote:

Q: You have been speaking to us about Jain Irrigation in the last few days, are you surprised that the way the stock has come off?

A: Yes, I am surprised and the concern is that probably can this fall be attributed to the fire, which according to the management has not damaged much. So definitely it’s a cause of concern and all along we have been worried about the non-realization of grants, which they are supposed to receive from government agencies. Those grants have piled up in their books and are to the extent of Rs 2,000 or Rs 2,500 crore plus. This has added a new negative to the stock price and confusion continues to remain. I don’t think that a positive view will be taken on the stock.

magnet · #7 20th December 2011, 08:55 PM

Tulsian's take today:

Quote:

Q: What about Jain Irrigation ?

A: I have been taking a fundamental call on the stock. I am tracking it closely, but I never thought that it can reach to two digit levels. Sometimes you are unable to find the real problem. I have no answer for this fall.

Bearish on Tata Steel, Jet Airways, VIP Inds: SP Tulsian - CNBC-TV18 -