Vodafone Idea shares surged more than 5% on Thursday, January 1, after the telecom operator announced a promoter-led capital infusion aimed at strengthening its balance sheet and supporting future cash flows. The development was disclosed in a regulatory filing following a board meeting held on December 31, 2025.
The company said it has entered into an agreement with the Vodafone Group, executing an amendment to the original Implementation Agreement dated March 20, 2017, thereby formalising the promoters’ commitment to infuse ₹5,836 crore into the company.
Promoters firm up ₹5,836 crore funding plan
As per the approved structure, ₹2,307 crore will be infused in cash over the next 12 months, while the remaining ₹3,529 crore will be raised by the promoters through the sale of equity shares held by certain Vodafone Group shareholders.
In its exchange filing, Vodafone Idea stated that it has entered into an amendment agreement dated December 31, 2025, with its promoter and promoter group shareholders, reaffirming earlier commitments made under the original implementation framework.
The company also clarified that part of the contingent liability adjustment mechanism has been secured through the pledge of 328 crore equity shares by certain Vodafone Group shareholders for a period of five years.
Vodafone Idea noted that during the 2018 Vodafone India–Idea merger, the erstwhile promoters had agreed to settle cash flow obligations linked to disputes arising prior to May 31, 2018. The latest funding arrangement builds on those commitments as the company continues efforts to stabilise its financial position.
Cabinet clears AGR relief, repayments rescheduled
In a parallel development, the Union Cabinet approved a relief package for Vodafone Idea, freezing its adjusted gross revenue (AGR) dues at ₹87,695 crore and rescheduling repayments over a 10-year period from FY32 to FY41, according to sources.
This followed the Supreme Court’s decision earlier this year allowing the government to reassess the telecom operator’s statutory dues. Under the revised framework, AGR dues frozen as of December 31 will be repaid between FY32 and FY41, while dues for FY18 and FY19 will continue to be paid between FY26 and FY31 without changes.
The frozen AGR amount will also be reassessed by the Department of Telecommunications, with the outcome to be determined by a government-appointed committee and treated as binding on both parties.
Stock performance
Vodafone Idea shares rose as much as 5.5% to an intraday high of ₹11.35. The stock has gained over 35% in the past year, 51% in six months, 32% over three months, and 13% in the last one month.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to market risks.
