Mumbai, January 1, 2026: Vodafone Idea Limited (IDEA) has entered into an amendment agreement with its promoter group entities from the Vodafone Group, formalising the discharge and recovery framework of contingent liabilities arising from the 2017 merger between Vodafone India and Idea Cellular.
Amendment Linked to Merger-Related Contingent Liabilities
The amended agreement relates to the contingent liability adjustment mechanism that was established at the time of the merger. Under this mechanism, Vodafone Idea had earlier recognised a maximum receivable of ₹8,369 crore from the Vodafone Group promoters. Of this, ₹1,975 crore has already been received.Following the amendment executed on December 31, 2025, the remaining receivable now stands capped at ₹6,394 crore. As per the revised terms, approximately ₹5,836 crore is currently receivable by the company.
Revised Recovery Structure Ensures Cash Flow Visibility
The updated arrangement provides a structured and time-bound recovery of the remaining amount through a mix of cash inflows and equity-backed security.A defined cash component of ₹2,307 crore is scheduled to be released by the Vodafone Group promoters over the next 12 months, in line with the agreed terms.
In addition, part of the outstanding amount is secured through the earmarking of 3.28 billion equity shares of Vodafone Idea by certain Vodafone Group shareholders for a five-year period. Proceeds from the sale of these shares, if undertaken under the company’s direction, will accrue to Vodafone Idea. As of the agreement date, the market value of the earmarked shares was estimated at ₹3,529 crore.
No Additional Conditions or Share Issuance
The recovery of the receivable does not require Vodafone Idea to make any prior payments to government departments as a pre-condition. The amendment does not involve any fresh issuance of shares, nor does it alter the existing shareholding structure.The transaction represents a modification to an existing promoter-linked arrangement and does not create new governance rights, board representation, or capital structure restrictions.
Financial Impact
The amendment enhances balance sheet certainty by ensuring recoverability of merger-related receivables and improves predictability of future cash flows. The structured recovery mechanism is expected to support Vodafone Idea’s financial planning over the medium term.About the Company
Vodafone Idea Limited is a listed telecom services provider in India, offering mobility and data services across consumer and enterprise segments. The company was formed through the merger of Vodafone India and Idea Cellular and operates under the Vi brand.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.