Jindal Steel & Power (JSPL) shares slipped over 5 per cent intraday after the company defaulted on interest repayments to its bondholders due on September 30, 2016. Those NCDs had a coupon rate of 9.8 per cent with about two-10 year maturities with banks, provident funds believed to be the investors. At 12.13 pm, shares of JSPL were trading 4.79 per cent down at Rs 79.45. The scrip opened the day at Rs 80.80 and had touched a high and low of Rs 82.30 and Rs 79.10, respectively, in trade so far. Later, the scrip closed 5.09 per cent down at Rs 79.20.
Earlier this year, rating agency Crisil had cut the company’s corporate debt rating to ‘D’, which is default category, from ‘BB+’. According to the rating agency, company had a total outstanding debt of Rs 40,000 crore, of which Rs 26,200 crore was in long-term instruments and Rs 13,800 crore in short-term papers.
For the quarter ended June 30, 2016, the company reported a consolidated net loss of Rs 1082.15 crore against net loss of Rs 542.42 crore in the corresponding quarter a year ago. Net sales of the company jumped by 3.84 per cent year-on-year to Rs 4536.12 crore for the quarter under review. It had reported net sales of Rs 4368.41 crore in the same quarter last year.
JSPL is a part of Jindal Group and is engaged in the business of steel, power, mining, oil & gas and infrastructure.