Shares of Jindal Steel & Power Ltd continued to face selling pressure for a second straight day, plunging 7 per cent, amid concerns over the company’s debt situation.
After a weak opening, the stock further tumbled 6.93 per cent to Rs 55 on the BSE. On the NSE, shares of the company plunged 7 per cent to Rs 55.
The stock had fallen over 6 per cent in the previous session.
Investors became jittery after rating agency Crisil downgraded JSPL and assigned a negative outlook.
Meanwhile, BSE has sought clarification from Jindal Steel & Power Ltd with reference to downgrade news.
Fund houses have exposure worth more than Rs 2,000 crore to JSPL group’s debt instruments, sources said.
The company, which is into diverse segments including steel, cement and power, has significant debt.
In an investor presentation on its latest third quarter results, the company said the focus would be on reducing working capital — receivables and inventories — as well as explore options to reduce interest costs.