MUMBAI (Reuters) - Eros International Media shares plunged for a second day on Friday, despite its U.S.-listed parent Eros International Plc’s efforts to calm investors, after Indian rating agency CARE downgraded its flagship unit to “default” levels.
CARE cited delays in debt servicing and cash flow issues at the company.
The move has spooked investors and shares in the New York-listed parent plunged nearly 50% on Thursday, while those in the Indian subsidiary are down more than 30% this week.
Eros said in a statement on Friday that its Indian unit was delayed on two interest payments on loans for April and May, but it assured investors that those were currently being remitted.
The clarification failed to assuage investors though, and shares of the Indian entity plunged a further 15% to 45 rupees in afternoon trading in Mumbai on Friday.
Eros counts Reliance Industries and Temasek among its major investors.
Reporting by Shilpa Jamkhandikar and Euan Rocha; editing by Uttaresh V and Gopakumar Warrier