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Last Updated : Dec 09, 2019 10:46 AM IST | Source: Moneycontrol.com

Vodafone Idea hits lower circuit after Chairman KM Birla's comments spook investors

The stock in the process hit lower circuit of Rs 6.23 per share. It was quoting at Rs 6.53, down Rs 0.39, or 5.64 percent.

 
 
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Vodafone Idea share prices fell over 5 percent intraday on December 9 after Chairman Kumar Mangalam Birla had said that the company might have to shut down its operations if it did not receive any relief from the government. Birla's comment was followed by the Supreme Court order to pay dues of Rs 92,000 crore to the government related to the AGR issue.

The stock of the telecom major hit lower circuit of Rs 6.23 per share for the second day in a row. It was quoting at Rs 6.53, down Rs 0.39, or 5.64 percent. It has touched an intraday high of Rs 6.64 and an intraday low of Rs 6.07. The stock plunged over 68 percent in the last one year.

Birla was responding to a query, posed at the Hindustan Times Leadership Summit, about the company's course of action going forward in the absence of government relief.

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Birla said the Aditya Birla Group would not invest any money in the company in the absence of relief from the government. "There is no sense that good money should follow bad money," he stated.

Birla said the company would have to opt for insolvency route in the absence of relief.

Vodafone Idea has removed cap from free outgoing calls on other networks under new plans for prepaid customers that came into effect from December 3.

It earlier capped outgoing calls to other telecom operators at 1,000 minutes in the 28-day plan, 3,000 minutes in the 84-day plan and 12,000 in the 365-day plan. Beyond this limit, customers were required to pay 6 paisa per minute for outgoing calls made to other networks.

Research firm Care Ratings Limited (CARE) earlier downgraded its rating on long-term bank facilities and non-convertible debentures from CARE A- to CARE BBB-. CRISIL has downgraded its rating on non-convertible debentures of Rs 3,500 crore of erstwhile Vodafone Mobile Services Limited (VMSL) from CRISIL BBB + to CRISIL BBB - with rating watch with negative implications.

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First Published on Dec 9, 2019 10:46 am
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