NEW YORK, January 1, 2026, 04:42 ET — Market closed
- Vodafone Idea shares rebounded in Mumbai after a volatile two-day swing tied to funding and policy headlines.
- The company disclosed a revised promoter settlement tied to legacy merger liabilities.
- Traders are watching for clarity on dues relief and the execution of the cash-and-shares recovery plan.
Vodafone Idea (VODA.NS) shares rose about 6% on Thursday, trading at 11.41 rupees in Mumbai after the telecom operator disclosed a revised settlement with Vodafone Group promoters. The stock has ranged between 10.84 and 11.93 rupees so far, after ending Wednesday at 10.76; the day’s lower and upper circuit limits — exchange-set bands that cap daily moves — were 10.23 and 12.36 rupees. 1
The move matters because Vodafone Idea is trading on near-term cash visibility, not long-dated turnaround narratives. Every shift in how quickly money can come in — or dues can be pushed out — has been moving the stock by double digits.
Investors are focused on whether the carrier can keep funding network needs while staying current on large payments to the government and counterparties. The latest disclosures add detail on both sides of that ledger.
In an exchange filing dated Dec. 31, Vodafone Idea said it amended a 2017 implementation agreement governing a contingent liability adjustment mechanism, or CLAM — a framework set up at the time of the Vodafone-Idea merger to settle pre-merger legal, regulatory, tax and other claims. It said about ₹5,836 crore is receivable under the revised terms, with ₹2,307 crore to be released in cash over the next 12 months and the balance secured via earmarking 3.28 billion shares for five years. Proceeds from any share sales, at the company’s instruction, would accrue to Vodafone Idea; the earmarked shares were valued at ₹3,529 crore based on the prior close of 10.76 rupees. 2
Vodafone Group, in a separate statement, said it would fully settle CLAM through a €219 million cash payment and by setting aside 3,280 million Vodafone Idea shares — equivalent to about 3.03% of the Indian operator — for Vodafone Idea’s benefit. Vodafone said the cash leg would be offset by Vodafone Idea settling an equivalent amount of outstanding Vodafone service charges, resulting in no net cash payment for Vodafone. 3
India has also granted Vodafone Idea, the country’s No. 3 telecom operator, a partial moratorium — a temporary pause — on its adjusted gross revenue (AGR) dues, freezing $9.76 billion of payments and deferring repayments to 2031-32 through 2040-41, a government source told Reuters. AGR is the revenue base used to compute telecom licence fees; the relief halts fresh interest and penalties but does not reduce the dues, and Vodafone Idea said it had not received formal communication about the decision. “The five-year moratorium gives the company recovery time,” said Vinit Bolinjkar, head of research at Ventura Securities. 4
Vodafone Idea shares fell 11% on Wednesday as investors priced in less relief than hoped, even after the stock briefly hit a 52-week high of 12.80 rupees, Business Standard reported. Tower operator Indus Towers climbed about 5% to a fresh 52-week high the same day as traders assessed whether better visibility at Vodafone Idea could support supplier payments. 5
Emkay Global Financial kept a “sell” rating on Vodafone Idea with a 6-rupee target price in a research note dated Jan. 1, saying the AGR moratorium leaves scope for a reassessment of dues but does not close the broader funding gap. The broker estimated Vodafone Idea has about 1.2 trillion rupees of deferred spectrum-payment obligations, with significant payments scheduled from FY26. 6
Bharti Airtel shares ended slightly higher on Wednesday while Vodafone Idea slid into double-digit losses, a reminder that investors have tended to reward telecom balance-sheet strength through the latest policy headlines. 7
Before the next session, investors will focus on execution: the timeline for the promoter cash release, the mechanics of any share sales under the earmarking arrangement, and the final wording of any government order on AGR relief.
Policy clarity matters as much as the headline numbers. Traders are also watching whether the sharp, two-way move this week pulls in fresh institutional flows or fades back into retail-led churn.
