Vodafone Idea secures Rs 5,836 crore promoter payout
Vodafone Idea will receive Rs 5,836 crore from the promoter Vodafone Group as part of the amended Implementation Agreement (IA) regarding its long-pending contingent liability settlement.
The promoters will release an amount of Rs 2,307 crore over the next 12 months in accordance with the terms agreed in the amended agreement.
The IA governs the contingent liability adjustment mechanism (CLAM) established at the time of the merger among erstwhile Vodafone India and Idea Cellular, and the Amendment Agreement records the discharge of such CLAM.
The decision was taken in a board meeting held on Wednesday, and changes were made to the erstwhile Implementation Agreement dated March 20, 2017.
According to the company's filing to stock exchanges, the revised CLAM recovery structure under the amended arrangement will be done through a combination of cash and share-based mechanisms.
Earlier, today, Vodafone Idea issued a clarification on media reports about Union Cabinet approving a five-year moratorium for the troubled telecom company, freezing the company’s adjusted gross revenue (AGR) dues at Rs 87,695 crore.
The company clarified that it has not received any communication from the government in relation to moratorium or AGR freeze. "As and when there is any development which requires disclosure, we will do the needful," a separate filing said.
Vodafone Idea shares today plunged 15% to an intraday low of Rs 10.25 on the NSE in a significant reversal of trends. The stock opened higher, rising 6% to hit an intraday high of Rs 12.8 before the sharp pullback.
The promoters will release an amount of Rs 2,307 crore over the next 12 months in accordance with the terms agreed in the amended agreement.
The IA governs the contingent liability adjustment mechanism (CLAM) established at the time of the merger among erstwhile Vodafone India and Idea Cellular, and the Amendment Agreement records the discharge of such CLAM.
The decision was taken in a board meeting held on Wednesday, and changes were made to the erstwhile Implementation Agreement dated March 20, 2017.
According to the company's filing to stock exchanges, the revised CLAM recovery structure under the amended arrangement will be done through a combination of cash and share-based mechanisms.
Earlier, today, Vodafone Idea issued a clarification on media reports about Union Cabinet approving a five-year moratorium for the troubled telecom company, freezing the company’s adjusted gross revenue (AGR) dues at Rs 87,695 crore.
The company clarified that it has not received any communication from the government in relation to moratorium or AGR freeze. "As and when there is any development which requires disclosure, we will do the needful," a separate filing said.
Vodafone Idea shares today plunged 15% to an intraday low of Rs 10.25 on the NSE in a significant reversal of trends. The stock opened higher, rising 6% to hit an intraday high of Rs 12.8 before the sharp pullback.
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