Voda Idea stock falls over 11 pc amid AGR woes
New Delhi, Feb 18 () Shares of Vodafone Idea on Tuesday settled over 11 per cent down in the wake of continuing business uncertainty over payment of statutory dues.
The scrip has been closing in the red for the past seven consecutive sessions. The company's credit rating has also been downgraded by two rating agencies.On the BSE, the stock plunged 17.25 per cent to trade at a low of Rs 2.83. It settled with a loss of 11.40 per cent at Rs 3.03.
In terms of traded volume, more than 64 crore shares of the company were traded on the NSE and over 15 crore units exchanged hands on the BSE.During the day, spurt in volume was more than 3.11 times on the BSE.
The stock has been on a losing spree for the past seven trading sessions on the BSE. It has plunged 43.9 per cent since February 7.Since then, the company has lost more than Rs 5,800 crore in market capitalisation. The company on Tuesday said India Ratings and Research (Ind-Ra) has downgraded its rating on non-convertible debentures (NCDs) of Rs 3,500 crore.
"The downgrade is on account of severe stress on the company's near-term liquidity after the Supreme Court's ruling on February 14, 2020, which directed the telecom companies to pay the adjusted gross revenue (AGR) related liabilities to the government of India by March 17, 2020," Vodafone Idea said in a BSE filing.
Care Ratings on Monday downgraded the company's 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 cognisance of recent losses suffered by the company in the quarter ended December 2019.
In a separate filing, Vodafone Idea had said its board has authorised the company to immediately pay Rs 2,500 crore, a portion of its statutory dues, to the telecom department on Monday.The company also promised to pay another Rs 1,000 crore before the end of the week.
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