Eros International shares tank 35% in two days1 min read . Updated: 07 Jun 2019, 11:58 AM IST
- At day's low, Eros International shares fell as much as 20% today
- In noon trade, Eros International shares had pared some losses
New Delhi: Shares of Eros International Media on Friday continued with its southbound journey for the second consecutive day. Rating agency Care which had cut its long-term bank facilities rating from BBB- to default after delay in debt servicing.
"The revision in the ratings assigned to the bank facilities of Eros International Media Ltd. (EIML) is on account of ongoing delays/default in debt servicing due to slowdown in collection from debtors, leading to cash flow issues in the company," the rating agency said in a statement.
Eros International acquires, co-produces and distributes films.
At day's low, Eros International shares fell as much as 20% today, extending their Thursday's 20% fall. In noon trade, Eros International shares had pared some losses and were trading 9% lower at ₹48.10.
Commenting on the ratings downgrade, Eros International in a statement to the exchanges today said: "We would like to clarify that this is on account of a delay in servicing of Bank loans for the month of April 2019 and May 2019 and will be cleared within the next seven working days."
"Furthermore, the company would like to clarify that our utilisation is less then ₹550 crs as compared to ₹750 crs facilities assessed by the rating agency as per the bank's sanctioned letters," Eros added.