New Delhi: Beleaguered telecom operator Vodafone Idea will receive around Rs 5,836 crore from Vodafone Group as part re-settlement of a liability claim pact between the two companies, according to regulatory filings of both companies.
Under the revised agreement, Vodafone group promoters will release Rs 2,307 crore over the next 12 months for Vodafone Idea as per the the terms agreed in the amendment agreement.
Vodafone Group has also set aside its 328 crore shares held in Vi for Vi’s benefit.
The revised arrangement ensures the liability is fully discharged and provides a significant liquidity boost for the telecom operator. Under the new terms, Vodafone Idea will receive Rs 5,836 crore, comprising Rs 2,307 crore in cash over the next 12 months and the remainder through Vodafone promoter shares that have been set aside.
Any proceeds from the sale of these shares will go directly to Vodafone.
Vodafone Idea Ltd has amended its 2017 implementation agreement with the Vodafone promoter group to secure recovery of contingent liabilities arising from the merger, the company said in an exchange filing on Wednesday. The revised arrangement ensures the liability is fully discharged and provides a significant liquidity boost for the telecom operator.
Under the new terms, Vodafone Idea will receive Rs 5,836 crore, comprising Rs 2,307 crore in cash over the next 12 months and the remainder through Vodafone promoter shares that have been set aside. Any proceeds from the sale of these shares will go directly to Vodafone Idea, according to the filing.
The amendment agreement also includes a structured payment plan, with promoters committing to release the cash component within a year. This move is expected to strengthen Vodafone Idea’s financial position as it continues efforts to manage debt and fund network expansion.
The company emphasised that the revised pact fully addresses contingent liabilities linked to the merger, providing clarity and stability for future operations. More details regarding the timeline for the share monetisation and its impact on financial metrics are expected to be released in the upcoming disclosures.
