Vodafone Idea stock falls over 16% after Care downgrades its rating on long-term bank facilities, NCDs

New Delhi: Shares of Vodafone Idea on Tuesday tanked over 16 percent due to rating downgrade on AGR dues and other issues of the company.

On the BSE, the stock plunged 14.91 percent to trade at Rs 2.91 in early market hours. Later it was trading with a loss of 8.77 percent at Rs 3.12.

The scrip plummeted to a low of Rs 2.85, down 16.17 percent, on the NSE. It was trading 7.35 percent 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.

#JustIn | Vodafone Idea says CARE Ratings downgrades co's long-term bank facilities & NCDs due to financial impact of no relief in payment of govt dues pic.twitter.com/NTrwSl3Ais

— CNBC-TV18 (@CNBCTV18Live) February 17, 2020

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 14 February.

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 percent 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.