Jain Irrigation at new low
Jain Irrigation has been hitting new lows consistently over the past may days. Today was no different. The stock hit another new 52-week low at Rs.4.46 and it remains at the same levels currently.
Debt has turned this very profitable company into a penny stock. And the debt woes do not seem to dissipate. The company is sitting on debt of around Rs.6000 crore.
On 3rd, S&P Global Ratings cut the company’s rating to ‘default’ after it failed to pay interest on its green dollar bond.
Inability to pay even this interest means the situation is grim. Its dollar notes are trading at a deep discount as the liquidity crunch for the company continues.
The company was unable to pay the interest due on its $200 million notes, due for maturity in 2022. S&P cut its rating on the company and the notes to ‘D’ after the 30-day grace period for meeting the obligation ended on 3rd March.