Jindal Steel drops over 5% as company defaults on NCD payments
June quarter was the seventh consecutive quarter when the company reported losses. The combined losses of seven quarters stood in excess of Rs 5,300 crore.
By ETMarkets.com | Updated:
NEW DELHI: Shares of Jindal Steel & Power (JSPL) dropped 5.09 per cent to Rs 79.20 on BSE after the debt-ridden company defaulted on interest payment to bondholders that were due on September 30.
The non-convertible debentures ( NCDs) had a coupon rate of 9.8 per cent with about two 10-year maturities.
The company had a total debt of Rs 44,139.66 crore on its balance sheet, data available with database Capitaline showed.
June quarter was the seventh consecutive quarter when the company reported losses. The combined losses of seven quarters stood in excess of Rs 5,300 crore. “Non-payment of interest on NCDs has been disclosed as per the regulatory norms. The said non-payment is due to short-term cash flow mismatches and will be paid in due course,” a JSPL spokesperson told ET.
Earlier this year, ratings major Crisil had cut JSPL's corporate debt rating to 'D', which is default category, from 'BB+'.
The non-convertible debentures ( NCDs) had a coupon rate of 9.8 per cent with about two 10-year maturities.
The company had a total debt of Rs 44,139.66 crore on its balance sheet, data available with database Capitaline showed.
June quarter was the seventh consecutive quarter when the company reported losses. The combined losses of seven quarters stood in excess of Rs 5,300 crore. “Non-payment of interest on NCDs has been disclosed as per the regulatory norms. The said non-payment is due to short-term cash flow mismatches and will be paid in due course,” a JSPL spokesperson told ET.
Earlier this year, ratings major Crisil had cut JSPL's corporate debt rating to 'D', which is default category, from 'BB+'.
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