Eros International shares continue to tumble; plunge 15% after downgrade by CARE

New Delhi: Shares of Eros International Media continued to face massive selling pressure Friday and plummeted 15 percent despite the company’s clarification regarding CARE ratings action. The scrip cracked 14.41 percent to close at Rs 45.45 on the BSE. During the day, it plummeted 19.96 percent to Rs 42.50 – its 52-week low. On the NSE, shares of the company plunged 15 percent to close at Rs 45.15. [caption id=“attachment_2408332” align=“alignleft” width=“380”] Representational image Reuters.[/caption] The scrip had fallen nearly 20 percent on Thursday too. The move has spooked investors and shares in the New York-listed parent plunged nearly 50% on Thursday. Credit Analysis and Research Ltd (CARE) had on Wednesday revised the ratings assigned to the bank facilities of the company to “CARE D”. In a filing to BSE Thursday, Eros said, “In reference to intimation made by the company to the stock exchanges on 5 June, 2019, regarding CARE D ratings assigned, we would like to clarify that this is on account of a delay in servicing of bank loans for the month of April 2019 and May 2019 and will be cleared within the next seven working days.” Furthermore, the company would like to clarify that our utilisation is less then Rs 550 crore as compared to Rs 750 crore facilities assessed by the rating agency as per the bank’s sanctioned letters, it added. Eros counts Reliance Industries and Temasek among its major investors. With agency inputs