JSPL shares plunge over 5 per cent on interest payment default

New Delhi: Shares of Jindal Steel and Power (JSPL) on October 6 slumped over 5 per cent after the company said it has defaulted on payment of interest on non-convertible debentures (NCD) owing to cash flow mismatches.

The stock plunged 5.09 per cent to settle at Rs 79.20 on BSE. During the day, it dipped 6.23 per cent to Rs 78.25. On NSE, shares of the company declined by 5.2 per cent to close the day at Rs 79.15.

The company's market valuation fell by Rs 387.96 crore to Rs 7,246.04 crore. In terms of volume, 21.72 lakh shares of the company were traded on BSE and over one crore shares changed hands at NSE during the day.

"The company has not made payment towards the interest due on ... NCDs, the due date for payment of which was September 30, 2016," the debt-laden firm said in a regulatory filing.

The NCDs had a coupon rate of 9.8 per cent and Axis Trustee Services was the trustee, it added.

When contacted, a JSPL spokesperson said: "The non payment of interest on the NCDs has been disclosed as per regulatory norms. The said non-payment is due to short-term cash flow mismatches and will be paid in due course."