Shares of Jaiprakash Associates plunged 12.5 per cent today after its rating was cut to default category by Care Ratings amid delay in servicing of debt obligations by the company due to weak liquidity.
The stock plummeted 9.31 per cent to Rs 10.52 on the BSE. During the day, it had tumbled 10.77 per cent to Rs 10.35.
On the NSE, the stock tanked 12.5 per cent to Rs 10.50.
The company's market value fell by Rs 262 crore to Rs 2,558.94 crore.
The rating committee of Credit Analysis & Research Limited (CARE) has revised the ratings of the company's bank loan facilities and NCDs.
"The revision in the ratings of bank facilities and instruments of Jaiprakash Associates Ltd takes into account delay in servicing of debt obligations by the company due to its weak liquidity position," according the company's filing on BSE yesterday.
However, the company has made suitable representation to the rating agency for a review of the same, the company said.
Care has revised the ratings of its bank facilities and instruments to 'Care D'.
CARE D ratings mean instruments with this rating are in default or are expected to be in default soon.
Jaiprakash Associates is the flagship company of the Jaypee group and is engaged in engineering and construction, cement, real estate and hospitality businesses.
