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Prakash Industries has tanked almost 20% to Rs 65, extending its previous day’s 4% fall on NSE, after rating agency CARE downgraded the company’s credit rating to ‘BB+’ from 'BBB+'.
The rating agency said the weakness in its credit profile due to uncertainty over raising resources to redeem foreign currency convertible bonds worth $77.1 million, the Business Standard report suggests.
This has been accentuated by the Central Bureau of Investigation (CBI) action against its promoters on account of allegations of graft and bribery. The issuer rating has also been placed under ‘credit watch', CARE stated.
Meanwhile, Prakash Industries on August 6 said that the company and its chairman have been wrongly embroiled in the case.
The company did not have any existing credit facility with Syndicate Bank and had not defaulted on servicing any loan. It had sufficient cash reserve and assets to meet its day-to-day requirements and commercial liabilities in the immediate future and that the case would have no material impact on its functioning or profitability, Prakash Industries said in a statement.
The stock opened at Rs 81 and touched high of Rs 82 on NSE. The counter has seen huge trading volumes with a combined 4.51 million shares changing hands so far on NSE and BSE.
The rating agency said the weakness in its credit profile due to uncertainty over raising resources to redeem foreign currency convertible bonds worth $77.1 million, the Business Standard report suggests.
This has been accentuated by the Central Bureau of Investigation (CBI) action against its promoters on account of allegations of graft and bribery. The issuer rating has also been placed under ‘credit watch', CARE stated.
Meanwhile, Prakash Industries on August 6 said that the company and its chairman have been wrongly embroiled in the case.
The company did not have any existing credit facility with Syndicate Bank and had not defaulted on servicing any loan. It had sufficient cash reserve and assets to meet its day-to-day requirements and commercial liabilities in the immediate future and that the case would have no material impact on its functioning or profitability, Prakash Industries said in a statement.
The stock opened at Rs 81 and touched high of Rs 82 on NSE. The counter has seen huge trading volumes with a combined 4.51 million shares changing hands so far on NSE and BSE.
