Vodafone Idea Shares Jump 6% on New Payout from Promoter Vodafone Group

Vodafone Idea Shares Jump 6% on New Payout from Promoter Vodafone Group

New Delhi: Vodafone Idea’s beleaguered investors have a reason to cheer as the telecom company’s shares surged 6% in early trading today. On the BSE, the stock touched ₹11.43 after the company announced that it will receive ₹5,836 crore from its promoter, Vodafone Group.

Background of the Payout
The funds are part of a revised Implementation Agreement (IA) related to the merger of Vodafone and Idea. The changes address certain pending liabilities that had not been previously settled. Under the new arrangement, Vodafone Group promoters will contribute ₹2,307 crore in cash over the next 12 months, while the remaining amount will be provided through shares.

Previously, Vodafone Idea had expected ₹8,369 crore under the Contingent Liability Adjustment Mechanism (CLAM), of which ₹1,975 crore had already been received. The revised agreement now ensures the company will receive approximately ₹5,836 crore.

Mechanism of the Share-based Payment
To facilitate this, certain shareholders of Vodafone Group have earmarked 3.28 billion equity shares of Vodafone Idea for five years. These shares will be sold at the company’s request, and the proceeds will be directed to Vodafone Idea. The market value of these shares is estimated at ₹3,529 crore, based on the NSE closing price of ₹10.76 on 31 December 2025.

Clarity on Old Liabilities
The revised agreement, executed on 31 December 2025, extends the previous sunset clause and provides greater clarity on the settlement of old liabilities. Vodafone Idea has also clarified that payments under CLAM are independent of any pre-condition payment to the Department of Telecommunications (DoT).

This adjustment is part of an existing related-party arrangement with the promoter group companies. No new shares are being issued, no loans are being extended, and no special rights are being granted. After closing at ₹10.76 on Wednesday following a 10.85% drop, Vodafone Idea shares opened today at ₹11.17, reflecting investor optimism over the new arrangement.New Delhi: Vodafone Idea’s beleaguered investors have a reason to cheer as the telecom company’s shares surged 6% in early trading today. On the BSE, the stock touched ₹11.43 after the company announced that it will receive ₹5,836 crore from its promoter, Vodafone Group.

Background of the Payout
The funds are part of a revised Implementation Agreement (IA) related to the merger of Vodafone and Idea. The changes address certain pending liabilities that had not been previously settled. Under the new arrangement, Vodafone Group promoters will contribute ₹2,307 crore in cash over the next 12 months, while the remaining amount will be provided through shares.

Previously, Vodafone Idea had expected ₹8,369 crore under the Contingent Liability Adjustment Mechanism (CLAM), of which ₹1,975 crore had already been received. The revised agreement now ensures the company will receive approximately ₹5,836 crore.

Mechanism of the Share-based Payment
To facilitate this, certain shareholders of Vodafone Group have earmarked 3.28 billion equity shares of Vodafone Idea for five years. These shares will be sold at the company’s request, and the proceeds will be directed to Vodafone Idea. The market value of these shares is estimated at ₹3,529 crore, based on the NSE closing price of ₹10.76 on 31 December 2025.

Clarity on Old Liabilities
The revised agreement, executed on 31 December 2025, extends the previous sunset clause and provides greater clarity on the settlement of old liabilities. Vodafone Idea has also clarified that payments under CLAM are independent of any pre-condition payment to the Department of Telecommunications (DoT).

This adjustment is part of an existing related-party arrangement with the promoter group companies. No new shares are being issued, no loans are being extended, and no special rights are being granted. After closing at ₹10.76 on Wednesday following a 10.85% drop, Vodafone Idea shares opened today at ₹11.17, reflecting investor optimism over the new arrangement.