Ess Dee Aluminium tanks over 40% in three trading sessions

The stock dipped 10% to Rs 149 and fallen 42% in past three trading sessions from Rs 256 on January 6.

Shares of Ess Dee Aluminium has dipped 10% to Rs 149, extending its past two days decline on the National Stock Exchange (NSE) after the credit rating agency Credit Analysis & Research Limited (CARE) has revised rating of various facilities availed by the company totaling Rs 515 crore from CARE BBB- to CARE D.

CARE has cited delays in debt servicing due to strained liquidity as the reason for the rating change.

The stock has fallen 42% in past three trading sessions from Rs 256 on January 6, despite the company clarified that it is regular in all payments of loans availed from various financial institutions as on December 31, 2015 except for one lender (Rs 11 crore facility). Payment for that also is under process.

The rating downgrade is based on last financial accounts (effective March 31, 2015) and Auditors’ report thereon but after that everything is rectified. The factual position has significantly changed since then, Ess Dee Aluminium said in a regulatory filing.

Furthermore, the company's lead banker (State Bank of India) has certified that there is no default in repayment and none of the accounts have been declared as non performing assets (NPA) by any of the lender as on December 31, 2015, it added.

Meanwhile, the stock exchanges revised the circuit filter of the scrip from 20% to 10% with effective from today.

At 12:43 p.m. the stock was down 9% at Rs 150 on the NSE as compared to 0.78% decline in the Nifty 50 index. The trading volumes on the counter more than doubled with a combined 1.66 million shares changed hands on the NSE and BSE so far.