Vodafone Idea shares fall over 5 pc on rating downgrade

Shares of Vodafone Idea on Thursday fell over 5 per cent after Brickwork Ratings downgraded the telecom operator's rating on non-convertible debentures (NCDs).

Vodafone Idea shares plunged 5.56 per cent to Rs 7.31 apiece on the BSE. The stock touched a low of Rs 7.01, down 9.43 per cent over the previous close.

On the National Stock Exchange (NSE), the stock slumped 5.81 per cent to Rs 7.30 per unit. It hit a low of Rs 7, a loss of 9.67 per cent.

"It is hereby informed that Brickwork Ratings has downgraded its rating on non-convertible debentures as per the rating rationale uploaded on its website yesterday," Vodafone Idea said in a BSE filing on Thursday.

Over 33 crore shares of Vodafone Idea were traded on the NSE, and over 4.6 crore on the BSE.

The rating for NCDs has been revised because of the considerable impact of the annual gross revenue-related liability on the financial performance of the company resulting in huge losses, erosion of networth and deterioration in the overall risk profile, Brickwork Ratings said on Wednesday.

The telecom company continues to lose subscribers diluting the impact of synergy benefits achieved so far, it added.