India's Eros seeks to calm investors as shares continue to plunge
07/06/2019 10:35
MUMBAI, June 7 (Reuters) - Eros International Media
EROS.NS shares plunged for a second day on Friday, despite its
U.S.-listed parent Eros International Plc's EROS.N 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. urn:newsml:reuters.com:*:nBSE7dJT7b
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.
urn:newsml:reuters.com:*:nBw3436mka
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 RELI.NS and Temasek among
its major investors.
(Reporting by Shilpa Jamkhandikar and Euan Rocha; editing by
Uttaresh V and Gopakumar Warrier)
((euan.rocha@tr.com; +91 22 6180 7257; Reuters Messaging:
euan.rocha.reuters.com@reuters.net))