Illustration by Binay Sinha
Cox & Kings shares were locked in the 5 per cent lower circuit in the early trade on the BSE on Tuesday to quote at an all-time low price of Rs 32.95 apiece after it defaulted on Rs 50 crore commercial paper. The stock has now fallen for six consecutive trading sessions.
There were pending sell orders for 3.9 million shares of Cox & Kings on the BSE, the exchange data show.
The tour operator issued a statement on Monday after defaulting on Rs 50 crore commercial paper. This is the second default by the company. Last week, it defaulted on a commercial paper of Rs 150 crore.
"The company is taking all required measures to resolve the temporary cash flow mismatch. It is evaluating each business and identifying ways to improve operational performance. The company is focusing on cash flow generation from each business and working at the highest priority to free working capital," Cox & Kings said. The company added that it had robust operating businesses.
Credit rating agencies Brickworks and CARE Ratings once again downgraded the company's debt following the latest default.