More funding and relief key to meet Vi liabilities

The share price of Vodafone Idea (Vi) rallied up to 11 per cent on Thursday and settled 8 per cent higher at %11.62 apiece, partially recouping Wednesday’s losses triggered by the Centre’s reported relief plan on its adjusted gross revenue (AGR) dues.

- DEEPAK KORGAONKAR

‘The rally in Vi share price came after Vodafone Group and Vi reached an agreement on Wednesday, regarding the settlement on long-pending contingent liabilities tied to the 2017 merger of Vodafone India and Idea Cellular.

According to the company, Vi is set to receive around %5,836 crore under the amended arrangement. Of this, 2,307 crore will be received in cash within the next 12 months. The balance (%3,529 crore) would come from Vodafone Group, setting aside 328 crore of Vi shares to be sold over a 5-year period for Vi's benefit, the company said in an exchange filing. This effectively discharges most of the contingent liability exposure that existed between the promoter group and the company, Vi said.

On Wednesday, Vi’s stock price had slipped 11 per cent, after hitting a 52-week high of %12.80 on December 31, 2025. Separately, the recovery in Vi shares may also be attributed to the telecom company’s clarification that it has not received any communication from the government regarding a 5-year moratorium on its adjusted gross revenue (AGR) dues.