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Vodafone Idea plunges 14% over KM Birla's comments, ratings downgrade

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Shares of Vodafone Idea plunged over 14 percent on Monday over Chairman Kumar Mangalam Birla's comment and series of downgrades from credit rating agencies.

Vodafone Idea plunges 14% over KM Birla's comments, ratings downgrade
Vodafone Idea shares plunged over 14 percent on Monday over comments from chairman Kumar Mangalam Birla and series of downgrades from credit ratings agencies. The stock prices fell as much as 14.49 perecnt to Rs 5.90 per share intraday on the NSE.
At 9:58 am, Vodafone Idea shares were trading  6.52 percent lower at Rs 6.45 per share on the NSE, while the Nifty50 was up 0.04 percent at 11,926.75.
On Friday, KM Birla at an event said, "The company may have to shut if there's no relief on the statutory dues that the telco has to pay by January-end."
"It does not make sense to put good money after bad... We will shut shop" added Birla.
Last week, Brickwork Ratings downgraded the stock's sovereign rating. The credit rating agency downgraded the rating of its non-convertible debentures to 'BBB-' from 'A-' earlier.
The downgrade is on account of the considerable impact of the AGR (adjusted gross revenue) related liability on the financial performance of the company resulting in huge losses, erosion of net worth and deterioration in the overall risk profile of the company, the report said.
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