Mumbai, Oct. 6: Jindal Steel & Power Ltd (JSPL) today said it had defaulted on the interest on non-convertible debentures (NCDs), which fell due on September 30, because of cash flow mismatches.

"The company has not made payment towards the interest due on NCDs, the due date for the payment of which was September 30," the debt-laden company said in a regulatory filing. The NCDs had a coupon rate of 9.8 per cent and Axis Trustee Services was the trustee, it added. However, the extent of the default could not be ascertained.

Quoting a JSPL spokesperson, PTI reported that the non-payment of interest on the NCDs was disclosed in accordance with the regulatory norms and the payment would be made in due course.

The development led to shares of JSPL dropping over 5 per cent to finish at Rs 79.20 on the BSE today.

In terms of volume, 21.72 lakh shares of the company were traded on the BSE and over one crore shares changed hands on the NSE during the day.

JSPL has divested some of its assets in the last few months to pare debt, estimated at Rs 46,000 crore. Earlier this week, the company said it will would sell its 24 megawatt (MW) wind power plant in Satara (Maharashtra) to a subsidiary of India Infrastructure Fund II for an undisclosed amount.

In May, the company had entered into an agreement with Sajjan Jindal's JSW Energy to sell its 1,000MW power plant at Raigarh in Chhattisgarh.