Vodafone Idea's credit rating upgraded amid share acquisition by Government

Vodafone Idea (IDEA) announced an upgrade in its credit ratings by CARE Ratings Limited (CARE), signaling improved financial prospects for the company. The long-term bank facilities rating has been raised to CARE BBB- with a stable outlook, up from CARE BB+, while the short-term bank facilities rating has been elevated to CARE A3 from CARE A4+. This upgrade comes as the Indian government, acting through the President of India, acquired a substantial number of shares in Vodafone Idea. This acquisition occurred through the issuance of shares under Section 62(4) of the Companies Act, 2013, following an order from the Department of Telecommunications, increasing the government's stake to 48.99% with 53,08,31,84,899 shares from 22.60% with 16,13,31,84,899 shares. The transaction, exempted from an open offer under SEBI regulations, was executed with the government receiving shares against dues. The upgrade and government stake acquisition may provide increased confidence in Vodafone Idea's financial stability.