Edelweiss Financial tumbles 7% on rating downgrade
The company's stock fell to its 52-week low level of Rs 76.30 on the BSE. Later, it closed 7.05 per cent lower at Rs 78.50.
The company's stock fell to its 52-week low level of Rs 76.30 on the BSE. Later, it closed 7.05 per cent lower at Rs 78.50
On the NSE also, the stock touched its 52-week low at Rs 76.30 before settling at Rs 78, down 7.80 per cent over its previous close.
The company's market valuation declined by Rs 549.48 crore to Rs 7,330.27 crore.
Edelweiss has already raised nearly Rs 3,000 crore through institutional investor CDPQ and Kora management since January this year. Another investment of about Rs 900 core is expected in the advisory business soon which includes the asset management company, wealth management, private credit funds and asset reconstruction company.
While downgrading, Crisil on Friday noted that although the group has been raising resources on an ongoing basis since September 2018, the overall fund raising remains significantly below pre-September 2018 levels.
Also, the ease of raising resources and the associated cost have been impacted, it added.
Crisil has re-affirmed the credit rating of 'CRISIL A1 +' assigned to the short-term borrowing programmes of the company, EFSL said in a BSE filing on Saturday.
Such instruments carry lowest credit risk, it added.