Shares of Jain Irrigation Systems tanked over 26 percent to a 52-week low on Wednesday after India Ratings and Research downgraded the company's Long-Term Issuer Rating to ‘IND BBB’ from ‘IND A-’.
Intraday, Jain Irrigation shares fell as much as 26.7 percent to Rs 20.20 per share. At 11:09 AM, the stock price was down 22.45 percent to Rs 21.25 per share on the NSE. The stock has been under pressure from the last 4 trading sessions. In last one month, the stock cracked about 62.91 percent, and, in last one year, it fell 78 percent.
The report said, "The downgrade reflects deterioration in the liquidity profile of Jain Irrigation Systems on account of a delay in the realisation of its receivables from its micro-irrigation systems segment."
"The RWN reflects the risk of delay in the company's deleveraging plans or a further increase in its working capital requirement, resulting in further worsening of its liquidity position." it further added.
Last week, the company in its press release clarified that it has not defaulted on any of its debt obligations and said that it was confident of carrying out its plan to reduce debt by Rs 2,000 crore via demerger, disinvestment and equity infusion.
The company's overall debt stands at around Rs 4,900 crore and its working capital is approximately at Rs 1,900 crore. It's cash and cash equivalents have significantly reduced in one year from Rs 400 crore to Rs 100 crore.
Catch all the latest and live updates here on CNBC TV18 Market Live Blog.
Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
First Published: Jun 19, 2019 11:53 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM