dipped 11% to Rs 199 on BSE in early morning trade, extending its Friday’s 13% fall, after the rating agencies downgraded the rating of the company on delays in servicing its debt obligations by JBF group. In past one week, the stock slipped 28% from Rs 278, against 0.48% rise in the S&P BSE Sensex.
“The rating of the company has been downgraded to “D” default rating by rating agencies predominantly due to delays by JBF group in servicing its debt obligations,” JBF Industries
said in a regulatory filing.
JBF is a manufacturer of Polyester
value chain products. The Company is one of the largest polyester
chips and yam manufacturers in India and around 7 5yo of the total domestic sales of the company find applications in the textile segment.
The company said, due to the recent policy changes by the Government of India namely, Demonetisation exercise and Goods & Service Tax (GST) implementation, there have been protesting shut downs in the domestic unorganized textile segment.
This has resulted in the cash flows of the company to be severely affected and delays in servicing some of its debt obligations with the lenders. In turn this has led to a formation of a Joint Lending Forum (JLF) by the lenders as per applicable guidelines of the Reserve Bank of India (RBI), it added.
However, the Company is of the view that these policy changes by the GOI, viz. Demonetization exercise and GST implementation, will have an overall positive effect on the Industry and the company in due course, JBF Industries
At 09:58 am; the stock was down 6% to Rs 210 on BSE, as compared to 0.29% rise in the S&P BSE Sensex. A combined 404,357 shares changed hands on the counter on BSE and NSE so far.