Vodafone Idea to recover ₹5,836 crore from promoters under revised merger agreement

Vodafone Idea Ltd

said on Wednesday that it has reached a revised agreement with the Vodafone Group promoters to recover money linked to liabilities from the 2017 merger of Vodafone India and Idea Cellular.

The company said the change relates to a mechanism agreed at the time of the merger to settle any legal, tax or regulatory liabilities that might arise later from the two companies’ past operations.

Under this mechanism, called the contingent liability adjustment mechanism, Vodafone Idea had recorded up to ₹8,369 crore as money receivable from the Vodafone Group. Of this, ₹1,975 crore has already been paid.

The amended agreement now allows Vodafone Idea to recover about ₹5,836 crore as of December 31, 2025.

The recovery will happen in two parts. First, the Vodafone Group promoters will pay ₹2,307 crore in cash over the next 12 months.

Second, certain Vodafone Group shareholders will set aside 3.28 billion Vodafone Idea shares for five years. These shares can be sold at the company’s direction, and the money raised will go to Vodafone Idea. At current market prices, these shares are valued at around ₹3,529 crore.

Vodafone Idea said the revised structure improves visibility on future cash inflows and strengthens its financial position. It also clarified that the company does not need to make any payments to the Department of Telecommunications in order to receive this money.