Published on 11/07/2019 1:05:42 PM | Source: Dion Global Solutions Ltd

Cox & Kings plunges on another CP default

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Shares of Cox & Kings fell nearly 5 per cent on Thursday at the Bombay Stock Exchange for the twelfth straight trading day after the company defaulted on commercial paper of Rs 125 crore. This is the company's third default in the past fortnight, totaling Rs 325 crore. Rating agency CARE Ratings revised Cox & King’s long-term bank facilities of Rs 1,760 crore to 'CARE D' from 'CARE C'. "The revision in ratings assigned to Cox and Kings takes into account default in CP (carved out) redemption due on July 9 and overdues in bank accounts," it said.

Cox & Kings, in a regulatory filing on Wednesday after market hours, said that Sneh Sadan Traders and Agents had invoked 349,602 of the company's equity shares (representing 0.18 percent of total paid-up equity) of Rs 5 each on June 10. The invocation of pledge could be due to a sharp fall in the share price. The stock has plunged 86 per cent in the last four months. Further, shares of the company fell by 4.92 per cent to trade at Rs 23.20 apiece on BSE. On NSE, the shares were trading at Rs 23.35 apiece, down by 4.89 per cent . Meanwhile, the BSE Sensex was at 38,726.10, up by 169.06 points or 0.44 per cent at 11:55 hours.