Naveen Jindal-led Jindal Steel and Power (JSPL) today said it has defaulted on payment of interest on non convertible debentures (NCD), due on September 30, 2016 on account of cash flow mismatches.
"The company has not made payment towards the interest due on ... NCDs, the due date for payment of which was September 30, 2016," the debt-laden firm said in a regulatory filing.
The NCDs had a coupon rate of 9.8 per cent and Axis Trustee Services was the trustee, it added.
When contacted, a JSPL spokesperson said: "The non payment of interest on the NCDs has been disclosed as per regulatory norms. The said non-payment is due to short-term cash flow mismatches and will be paid in due course."
Reacting to the development, JSPL shares today fell by 5.27 per cent to Rs 79.05 a piece in the afternoon trade on BSE, while they dropped by 5.33 per cent to Rs 79.05 per share on NSE.
The firm, in the last few months, has divested some of its assets to pare debt. JSPL has a net debt of around Rs 46,000 crore.
Earlier this week, JSPL said it will sell its 24 MW wind power plant in Satara, Maharashtra to a subsidiary of India infrastructure Fund II for an undisclosed amount.
In May this year, the firm inked an agreement with JSW Energy, a firm led by Naveen's brother Sajjan Jindal, to sell its 1,000 MW power plant, situated at Raigarh, Chhattisgarh.
According to the deal, JSW will pay at least Rs 4,000 crore, excluding net current assets, and an additional Rs 2,500 crore if JSPL's power plant secures a long term power purchase agreement.
Similarly, in March, JSPL announced that its subsidiary Jindal Power has entered into a definitive agreement to divest 4.12 per cent stake in Indian Energy Exchange for an undisclosed amount by month-end.
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