Vodafone Idea To Get Rs 5,836 Crore Under Revised Pact With Promoters

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.

In a major development earlier in the day, the telecom company had been granted relief after the Cabinet granted a five-year interest-free moratorium on its over Rs 87,000 crore plus pending statutory dues linked to adjusted gross revenue, sources have told NDTV Profit.

As part of the package, the government will be freezing Vodafone Idea's AGR dues without any interest until FY32. Following this, the share price had fallen as much as 15% in trade today.

The approval was granted after a Cabinet meeting on Wednesday, serving as a much-needed relief for a cash-strapped Vodafone Idea.