Eros International hit the 20% lower circuit and a new 52-week low at Rs.53.10. It now remains frozen at this new low.
Like DHFL, Eros too has been hit with a downgrade by credit rating agency.
CARE yesterday lowered the long-term loan facilities to ‘D’ or default from BBB-. This is eerily similar to sharp downgrade which came in for IL&FS before it all collapsed. This downgrade by many notches, that too all of a sudden has spooked the market.
CARE has said that delays and likely defaults in serving the debt is the reason why CARE downgraded the loan facilities of Eros.