Under the revised agreement, Vodafone Group Promoters will release Rs 2,307 crore over the next 12 months, while the remaining amount will be secured through a share-based mechanism.
The amended IA pertains to the Contingent Liability Adjustment Mechanism (CLAM), under which Vodafone Idea had earlier recognised Rs 8,369 crore as receivable from promoters. After accounting for Rs 1,975 crore already received, the balance CLAM amount stood at Rs 6,394 crore. As per the revised terms, around Rs 5,836 crore is now recoverable by the company.
As part of the recovery structure, certain Vodafone Group shareholders have earmarked 3.28 billion equity shares of Vodafone Idea for a period of five years. Proceeds from the sale of these shares, executed at the company’s direction, will accrue to Vodafone Idea. The market value of the earmarked shares is estimated at Rs 3,529 crore, based on the NSE closing price of Rs 10.76 per share as of the amendment date.
The amendment agreement was executed on December 31, 2025, extending the earlier sunset clause and providing greater clarity on the settlement of legacy contingent liabilities. The company clarified that receipt of the CLAM amount is not linked to any pre-condition payments to the Department of Telecommunications.
The transaction is a modification to an existing related-party arrangement with promoter group entities and does not involve any issuance of shares, loans, or special rights.
On Wednesday, Vodafone Idea shares dropped 10.85%, closing at ₹10.76 on the BSE. During the day, the stock briefly hit a 52-week high of ₹12.80 before slipping back to its closing level. The company currently has a market capitalization of ₹1,16,577 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)