Eros hits 20% lower circuit after default rating by CARE1 min read . Updated: 06 Jun 2019, 10:11 AM IST
- The stock touched an all time low of ₹53.10 on BSE
- Rating agency has cut Eros International’s short-term bank facilities to D from A3
Mumbai: Shares of Eros International Media Ltd on Thursday slumped 20% lower circuit to hit a record low after rating firm Care has cut its long term bank facilities rating to Default from BBB- after delay in debt servicing.
The stock touched an all time low of ₹53.10 on BSE from its previous close of ₹66.35 a share. Year to date, the stock is down nearly 40%. India's benchmark Sensex fell 0.3% to 39968.97 points.
The rating firm cited default rating due to a slowdown in the collection from debtors, leading to cash flow issues in the company.
Rating agency also cut Eros International’s short-term bank facilities to D from A3 and long-term cash credit bank facilities to D from BBB-.