Jain Irrigation has acquired two American irrigation and distribution companies, Agri-Valley Irrigation Inc and Irrigation Design and Construction Inc, for $48.5 million or approximately Rs.315 crore. JISL recently raised over Rs. 800 crore, which is in part being used to fund these acquisitions. The company's share price hit a new 52 week high today on the news.

JISL through its wholly-owned US subsidiary Jain Irrigation Inc will acquire 80% stake, following the merger of the two US irrigation distribution companies. Jain Irrigation plans to distribute its tech portfolio in California through the network of these companies, the management said. It will keep the existing employees and management on subsidiary Jain Irrigation payrolls, the firm said. 

Analysts have been bullish on Jain Irrigation Systems (JISL), which has dominated the Indian MIS segment with 50% market share, and is  a top 3 players in PVC & PE piping and the largest player in food processing in India. Religare Securities issued a price target of Rs. 120 on JISL mid-March, saying that the firm is set to benefit from higher spending targets on MIS and food processing by the government.

Q3FY17 had seen the company's net sales increase by 4.6% yoy, and PAT rose by 126.7% yoy.  JISL management says it expects strong Q4 earnings for FY17, due to purchases postponed during demonetization, that were expected to spillover to orders before the end of the year.