Edelweiss Financial Services shares plummet 9% to hit 52-week low on rating downgrade

New Delhi: Shares of Edelweiss Financial Services Ltd (EFSL) on Monday declined over nine percent following a downgrade of its long-term debt instruments amid concerns over operating environment for NBFCs. The company’s stock fell to its 52-week low level at Rs 76.30, on the BSE. Later on, the scrip was trading 8.64 percent lower at Rs 77.15. [caption id=“attachment_5263731” align=“alignleft” width=“380”] Representative image. Reuters[/caption] On the NSE also, the stock touched its 52-week low at Rs 76.30. However, the scrip managed to pare some of the early losses and was trading 9.04 percent lower at Rs 76.95. While downgrading, CRISIL on Friday noted that although the group has been raising resources on an ongoing basis since September 2018, the overall fundraising remains significantly below pre-September 2018 levels. Also, the ease of raising resources and the associated cost have been impacted, it added. CRISIL has re-affirmed the credit rating of ‘CRISIL A1 +’ assigned to the short-term borrowing programmes of the company, EFSL said in a BSE filing on Saturday. Such instruments carry lowest credit risk, it added.