Vodafone-Idea stock falls sharply on rating downgrade

PTI New Delhi | Updated on February 18, 2020

On the BSE, the stock fell 14 per cent, and on the NSE, it was down 16 per cent

Shares of Vodafone Idea on Tuesday tanked over 16 per cent due to rating downgrade on AGR dues and other issues of the company.

On the BSE, the stock plunged 14.91 per cent to trade at ₹2.91 in early market hours. Later it was trading with a loss of 8.77 per cent at ₹3.12. The scrip plummeted to a low of ₹2.85, down 16.17 per cent, on the NSE. It was trading 7.35 per cent lower at ₹3.15.

On Monday, Vodafone Idea said that Care Ratings has downgraded rating on its long-term bank facilities and non-convertible debentures.

The downgrade is on account of “significant erosion” in the overall risk profile of the company in the wake of absence of relief on modification plea relating to AGR dues on February 14.

It also takes cognizance of recent losses suffered by the company in the quarter ended December.

In a separate filing, Vodafone Idea had said its board has authorised the company to immediately pay ₹2,500 crore, a portion of its statutory dues, to the telecom department on Monday. The company also promised to pay another ₹1,000 crore before the end of the week.

Meanwhile, shares of Bharti Airtel lost 1.82 per cent to trade at ₹554.70 apiece on the BSE. On Monday, Airtel said that it has paid ₹10,000 crore to the DoT towards statutory dues.

Published on February 18, 2020

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