Vodafone Idea stock tanks 16% to ₹3 after rating downgrade

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 Rs 2.91 in early market hours. Later it was trading with a loss of 8.77 per cent at Rs 3.12.

The scrip plummeted to a low of Rs 2.85, down 16.17 per cent, on the NSE. It was trading 7.35 per cent lower at Rs 3.15.

Vodafone Idea on Monday said 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 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.

Meanwhile, shares of Bharti Airtel lost 1.82 per cent to trade at Rs 554.70 apiece on the BSE.

Bharti Airtel on Monday said it has paid Rs 10,000 crore to the DoT towards statutory dues. RUJ ANUANU