Heard on the Street: Jain Irrigation soars 5% on talk RIL may buy

Shares of Jain Irrigation soared almost 5% on Monday to 108.45 on talk that Reliance Industries may buy 10% stake in the company and set up a joint venture with it. Speculation is rife that the stake sale will happen at a premium to Jain Irrigation's current market price.

The buzz is Jain Irrigation will use the stake sale proceeds to retire a portion of its debt. Anil B Jain, joint managing director, Jain Irrigation denied the development. An email query to Reliance Industries remained unanswered till the time of going to print. Shares of RIL closed at 796.95, up 3.02%. Jain Irrigation is India's biggest producer of micro irrigation systems and is also into food processing.

(Contributed by Rachita Prasad)