Jain Irrigation Systems Limited shares jumped more than 22% on Thursday after the company tried to ward off investors’ concerns around debt servicing.
The company’s shares hit a 52-week low of ₹16.3 after India Ratings and Research (Ind-Ra) downgraded the firm’s long-term issuer rating to ‘IND BBB’ from ‘IND A,’while placing it on rating watch negative (RWN) on Wednesday.
“We wish to reassure our investors and stakeholders that company is moving forward with normal operations and is confident of fulfilling its agenda, while making serious efforts to de-leverage its balance sheet,” it said in regulatory filings.
Unabated and unprecedented significant fall in share price is not the result of anything linked to company’s current or expected performance, but may be linked to exit of company’s stock from F&O and/or negative sentiments born out of speculative operations fuelled by rumours, said the company statement. “Management remains committed to owning and running all its major business based on intrinsic value, which has been created while pursuing deleveraging to reduce debt by ₹2,000 crore as conveyed earlier,” it said.
Shares rise
Jain Irrigation shares rose 22.08% to close at ₹24.05 in a firm Mumbai market on Thursday.
“Any new investment infusion, either by private equity / sovereign or other investors, in one or more divisions is being done. This is not to address any immediate shortfall in debt. Deleveraging is part of a well-thought out strategy to create a much better balance sheet,” said the statement.