Shares of Eros International Media continued to face massive selling pressure Friday and plummeted 15 per cent despite the company’s clarification regarding CARE ratings action.
The scrip cracked 14.41 per cent to close at Rs 45.45 on the BSE. During the day, it plummeted 19.96 per cent to Rs 42.50 — its 52-week low.
On the NSE, shares of the company plunged 15 per cent to close at Rs 45.15.
The scrip had fallen nearly 20 per cent on Thursday too.
Credit Analysis and Research Ltd (CARE) had on Wednesday revised the ratings assigned to the bank facilities of the company to “CARE D”.
In a filing to BSE Thursday, Eros said, “In reference to intimation made by the company to the stock exchanges on June 5, 2019, regarding CARE D ratings assigned, 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 Rs 550 crore as compared to Rs 750 crore facilities assessed by the rating agency as per the bank’s sanctioned letters, it added.