NEW DELHI: Shares of Jain Irrigation SystemsNSE -18.98 % cracked almost 19 per cent to hit their 52-week low at Rs 22.30 in Wednesday's session and looked on course to extend their losing streak to the fourth successive day.
The stock has been reeling under pressure on reports of defaults followed by rating downgrades.
India Ratings and Research downgraded the Jalgaon-based company’s long-term issuer rating to ‘IND BBB’ from ‘IND A-’ while placing it on ‘Rating Watch Negative’ (RWN).
Jain Irrigation is planning to sell its pipes or food business to reduce the debt. Its overall debt is about Rs 4,900 crore of which Rs 1,400 crore is in form of long term bonds due in February 2022. A significant portion of the debt is working capital in nature.
Shares of Jain Irrigation traded 17.15 per cent down at Rs 22.70 on BSE around 10:20 am.
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