Vodafone Idea zooms 10% in early trade; here's why

New Delhi: Shares of Vodafone Idea zoomed 10 per cent in early trade on Wednesday after revision in credit ratings of the debt-ridden telecom operator.

Care Ratings has revised its ratings on the long term bank facilities and non-convertible debentures (NCD) as per the rating rationale, the company said in a regulatory filing.

Following the update, shares of Vodafone Idea zoomed 10 per cent to Rs 11.75 on Wednesday before trading at Rs 11.62 at 9.45 am. The scrip had settled at Rs 10.69 on Tuesday.

Care Ratings upgraded the rating for long term bank facilities of the telecom operator to CARE B+ with a stable outlook, which was CARE B- (Credit Watch with Negative Implications) earlier.

The agency has also upgraded its NCD rating to CARE B+ with a stable outlook from CARE B- (Credit Watch with Negative Implications) earlier.

Shares of Vodafone Idea have eased about 35 per cent from its 52-week high of Rs 16.79, hit in December 2021. The company has been under pressure after converting dues into equity to the government.