Vodafone idea
Idea shares have brought another good news for investors. Actually, the credit rating of Vodafone Idea has improved a notch. It has increased from the earlier BB+ to BBB. This will promote the company’s possibilities of pending loans of ₹ 25,000 crore. The company has given this information to NSE and BSE under Regulation 30 under the Listing Rules of SEBI. On Friday, the rating agency ICRA gave better BBB-credit rating to VI’s long-term fund features, while Care Ratings gave BB+ rating in June 2024.
Improvement after government’s share of share
Idea’s ratings improve after the government’s stake in the company increased. The ‘BBB-‘ rating from ICRA shows that the company has sufficient ability to fulfill its business obligations. At the same time, the ‘stable’ outlook states that this ability is expected to remain a large extent stable in the near future. Market experts believe that this rating can have a positive impact on the shares of Vodafone Idea. This will increase the trust of investors and can see a good boom in the stock.
CITI increased target price by 76%
According to CITI Research, Voda Idea shares may rise 76% from the current price. The reason for this is the relief from the government. The government has increased its stake in the company to 48.99%. The government has converted a spectrum arrears of Rs 36,950 crore of Vodafone Idea (VIL) into stake. The total loan of Vodafone Idea will be reduced by about 18 percent by converting spectrum arrears into equity. This step is going to strengthen the balance sheet. Along with this, City Research has increased the target price of stock to Rs 12 per share. The current price of Idea shares is Rs 7.18.
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