NEW DELHI, July 2: Cox & Kings stock further fell 5 per cent Tuesday to hit its lowest trading permissible limit for the day following a payment default.
The scrip dropped 4.91 per cent to Rs 32.95 — its 52-week low and also its lower circuit limit — on the BSE.
At NSE also, the stock plunged 5 per cent to hit its 52-week low and the lower circuit limit.
On June 27, the company said it defaulted on payment of commercial papers due to cash flow mismatch. Cox & Kings was required to pay Rs 200 crore, however, it was able to pay only Rs 50 crore and defaulted on Rs 150 crore.
The travel services firm Monday said it is taking steps to resolve the “temporary” cash flow mismatch and will approach lenders to work out a “time-bound” solution to this emergency.
In a regulatory filing, Cox & Kings said,”the company is taking all required measures to resolve the temporary cash flow mismatch.”
The working capital situation at Cox & Kings stretched in the past few months and was further impacted due to its inability to replace the short-term loans with long-term loans, it said.
“The company will also be approaching its lenders to work out some time-bound programme to meet this emergency,” it said, adding that Cox & Kings is evaluating each business and identifying ways to improve operational performance. (PTI)
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