Voda Idea shares fall on rating downgrade, pare losses to end 2% higher

Shares of Vodafone Idea on Thursday settled in green after declining over 13 per cent in day trade following a rating downgrade by Care Ratings.

Shares of the telecom operator ended up by 2.10 per cent at Rs 3.89 apiece. Intra-day, the stock slumped 13.12 per cent to its 52-week low of Rs 3.31 apiece on BSE.

The stock gained 1.32 per cent to Rs 3.85 at close on NSE. During the day, it declined 13.15 per cent to Rs 3.30 on the bourse.

Vodafone Idea on Wednesday said Care Ratings has downgraded its rating on 'long-term bank facilities' and non-convertible debentures', citing the recent court ruling on the AGR, and extension of timelines with regard to sale of Indus Tower stake to Bharti lnfratel.

According to the telecom department's initial calculations, Vodafone Idea may have to pay about Rs 40,000 crore, while Bharti Airtel faces a liability of around Rs 42,000 crore (including licence fees and spectrum usage charges).