The shares of Housing Development and Infrastructure Ltd fell significantly after credit agency Credit Analysis and Research Ltd (CARE) downgraded the company’s non-convertible debentures issue.

The real estate developer’s shares fell 19.65 per cent to Rs 48.85, which is its lowest level ever, on the Bombay Stock Exchange (BSE) after the research agency downgraded the issue. The shares of the company fell 19.83 per cent to a one year low of Rs 48.70 on the National Stock Exchange (NSE). The company’s market capitalisation fell from Rs 423 crore to Rs 2,124 crore.

“The company is in receipt of letter from CARE informing that, they have revised the rating from CARE BBB+ to CARE 'D' assigned to the non-convertible debentures issue of the citing recent developments,” it said in a filing with the BSE.

Credit Analysis and Research Ltd (CARE) said that the downgrade is due to on-going delays in servicing some of the company’s debts. HDIL responded by saying that it does not accept the rating assigned by the research firm and it has strong financial and operational position. HDIL has also urged CARE to review threating assigned to the company as D is assigned to issues that are default or are set to be default soon.