Shares of Jain Irrigation
(JISL) extended decline for the fourth consecutive session on Wednesday and currently trading 22% lower on the NSE. The stock was trading at its lowest level since February 02, 2005.
The stock fell after the rating agency said the downgrade reflects deterioration in the liquidity profile of JISL on account of a delay in the realisation of its receivables from its micro-irrigation systems (MIS) segment.
Further, the Economic Times report said that India Ratings and Research downgraded the company’s long-term issuer rating to ‘IND BBB’ from ‘IND A-’ while placing it on ‘Rating Watch Negative’ (RWN).
The company in the last week clarified that it has not defaulted on any of its debt obligations and stated it was confident of executing its plan to bring down its debt by Rs2,000cr. Jain Irrigation is planning to sell its pipes or food business to reduce the debt. Its overall debt is about Rs4,900cr of which Rs1,400cr is in the form of long term bonds due in February 2022. A significant portion of the debt is working capital in nature, the media reports added.
Jain Irrigation Systems Ltd is currently trading at Rs20.90, down by Rs6.5 or 23.72% from its previous closing of Rs27.40 on the BSE. The scrip opened at Rs25.75 and has touched a high and low of Rs26.50 and Rs20.20 respectively.