Shares of Jain Irrigation Systems were up 4 percent after the company received the Reserve Bank of India’s approval to launch non-banking finance company.
Named Sustainable Agro-Commercial Finance Ltd, the company is a joint venture between Jain Irrgation, other promoter group companies and International Finance Corporation.
The company’s focus will be on rural and semi-urban geographies and its target customers will be farmers, the company said in a release.
By August end, Jain Irrigation will set up 25 offices in Maharashtra.
Investors had pummelled the stock after the company announced the plans to set up an NBFC in 2011, February.
Today’s share reaction in sharp contrast to this.
Jain Irrigation had earlier clarified that agri-lending is not an unrelated operation for the company, in its bid to allay investor concerns.
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