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Vodafone Idea Surges on Rs 5,836 Crore Deal
1 Jan
Summary
- Vodafone Idea shares rose over 4% following an amended agreement.
- The company will receive Rs 5,836 crore under revised terms.
- Vodafone Group has earmarked 328 crore shares for Vi's benefit.
Vodafone Idea's stock experienced a significant jump of over 4% following an amended agreement with Vodafone Group promoters concerning contingent liabilities from the initial merger. This revised pact will see Vodafone Idea receive approximately Rs 5,836 crore, with a substantial portion of Rs 2,307 crore to be disbursed within the next twelve months. This financial injection offers a much-needed lifeline for the debt-laden telecom operator.
Further bolstering Vi's financial standing, Vodafone Group has set aside 328 crore of its own shares for the company's benefit. These shares, currently valued at Rs 3,529 crore as of the amendment date, can be sold by Vi in tranches, with all proceeds directed to the company. This strategic move aims to provide additional financial flexibility and support.
This development comes as Vodafone Idea grapples with substantial Adjusted Gross Revenue (AGR) dues. The Union Cabinet's recent approval of a relief package, which freezes AGR dues of Rs 87,695 crore payable over a decade from FY32 to FY41, offers some respite, though dues from FY18 and FY19 remain payable from FY26 to FY31.
