Shares of Vodafone Idea rose over 4% in Wednesday’s session, trading around Rs 11.20, after the telecom operator confirmed that it has receivables worth Rs 5,836 crore from UK-based promoter Vodafone Group, providing near-term relief to investor sentiment.
In a regulatory filing dated December 31, 2025, Vodafone Idea said it has entered into an Amendment Agreement with promoter group entities, including Vodafone International Holdings B.V., to discharge obligations under the Contingent Liability Adjustment Mechanism (CLAM) that was put in place at the time of the Vodafone–Idea merger.
According to the disclosure, the company had originally recognised a receivable of Rs 8,369 crore from Vodafone Group under CLAM, out of which Rs 1,975 crore has already been received. Following a reassessment under the revised terms, the balance receivable — capped at Rs 6,394 crore — now stands at around Rs 5,836 crore.
As per the amended recovery structure, Vodafone Group promoters will release Rs 2,307 crore in cash over the next 12 months. In addition, 3.28 billion Vodafone Idea equity shares have been earmarked for a period of five years, with sale proceeds to accrue to the company. Based on the NSE closing price of Rs 10.76 per share, these shares were valued at around Rs 3,529 crore as of the amendment date.
Importantly, Vodafone Idea clarified that receipt of the CLAM amount does not require any pre-condition payments to the Department of Telecommunications, improving visibility on future cash flows and offering balance sheet support at a time when the company continues to face financial stress. The board meeting approving the amendment concluded on December 31, 2025, and the transaction does not involve issuance of new shares or any fresh related-party arrangements beyond modification of existing terms.
The move comes a day after Vodafone Idea’s shares had plunged nearly 15% from the day’s highs on December 31, despite reports of a major relief package approved by the Union Cabinet on the company’s long-pending Adjusted Gross Revenue (AGR) dues. The stock had rallied sharply earlier in that session on optimism around a five-year interest-free moratorium on AGR liabilities, before slipping in afternoon trade due to profit booking, as investors awaited official notification and finer details of the relief package.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
