Vodafone Idea Share Price Rises 8%; Amends Implementation Agreement With Vodafone Group To Recover CLAM Dues

Vodafone Idea Limited has entered into an amendment agreement with the Vodafone Group on December 31, 2025, modifying the Implementation Agreement originally signed on March 20, 2017. 

The revised agreement relates to the resolution and discharge of contingent liabilities arising from the merger of erstwhile Vodafone India and Idea Cellular. This development marks an important step in strengthening Vodafone Idea’s financial position and improving cash flow visibility.

Parties Involved In The Amendment Agreement

The amendment agreement has been executed between Vodafone Idea Limited and its promoter and promoter group shareholders collectively referred to as the Vodafone Group Promoters. 

These include entities such as Al-Amin Investments Limited, Asian Telecommunication Investments (Mauritius) Limited, CCII (Mauritius), Inc., Euro Pacific Securities Ltd., Vodafone Telecommunications (India) Limited, Mobilvest, Prime Metals Ltd., Trans Crystal Ltd., Omega Telecom Holdings Private Limited, Usha Martin Telematics Limited, and Vodafone International Holdings B.V.

Purpose Of The Amendment Agreement

The original Implementation Agreement governed the Contingent Liability Adjustment Mechanism (CLAM), which was established to address any legal, regulatory, tax, or other contingent liabilities that crystallised after the merger. 

Vodafone Idea had earlier recognised ₹8,369 crore as receivable from the Vodafone Group Promoters, which was the maximum cap under CLAM. After receiving ₹1,975 crore, the remaining capped amount of ₹6,394 crore continued to be recognised as receivable.

The amendment agreement records the mutual understanding between the parties for the discharge of this CLAM amount, even though the original sunset clause of June 30, 2025 was extended to December 31, 2025.

Size And Structure Of CLAM Recovery

Following the amended terms, Vodafone Idea is now eligible to recover approximately ₹5,836 crore from the Vodafone Group Promoters. The revised recovery framework combines both cash and equity-linked mechanisms.

Under the agreement, ₹2,307 crore will be released in cash by the Vodafone Group Promoters over the next 12 months, subject to agreed conditions. In addition, 3.28 billion equity shares of Vodafone Idea have been earmarked by certain Vodafone Group shareholders for a five-year period. 

The proceeds from the sale of these shares, as instructed by an authorised person appointed by Vodafone Idea, will accrue to the company. As of the amendment date, the market value of these shares stood at ₹3,529 crore based on the NSE closing price of ₹10.76 per share.

Importantly, the receipt of CLAM funds is not contingent on Vodafone Idea making any prior payments to the Department of Telecommunications.

Background Of The Implementation Agreement

The original Implementation Agreement was executed in March 2017 to govern the merger between Vodafone Group-promoted entities and Aditya Birla Group-promoted Idea Cellular. It also outlined mechanisms for handling contingent liabilities arising after the merger.

Vodafone Idea Share Price Performance

On January 1, 2026, Vodafone Idea share price (NSE: IDEA) opened at ₹11.17, up from its previous close of ₹10.76. At 10:50 AM, the share price of Vodafone Idea was trading at ₹11.64, up by 8.18% on the BSE.

Also Read: Vodafone Idea Share Price Slide 16% Despite ₹87,695 Crore AGR Relief!

Conclusion

The amendment to the Implementation Agreement ensures recoverability of the remaining CLAM amount and brings greater certainty to Vodafone Idea’s future cash flows. By securing a structured combination of cash inflows and equity-linked recovery, the agreement strengthens the company’s financial framework and enhances balance sheet stability at a crucial phase of its turnaround journey.

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