Vodafone Idea shares jumped 6.13 per cent to ₹11.42 on Thursday afternoon, building on gains after the telecom operator disclosed a revised agreement with Vodafone Group promoters to settle ₹6,394 crore in contingent liability adjustment mechanism (CLAM) dues.
The stock opened at ₹11.20 and touched an intraday high of ₹11.93, with heavy volumes of over 25,380 lakh shares traded by early afternoon. The counter saw heightened activity with 56 per cent sell orders against 44 per cent buy orders as traders booked profits following the latest disclosure.
Under the amendment agreement signed December 31, Vodafone Idea will receive approximately ₹5,836 crore through a combination of ₹2,307 crore in cash over 12 months and 3.28 billion earmarked shares worth ₹3,529 crore at current market prices. The Vodafone Group promoters had already paid ₹1,975 crore of the original ₹8,369 crore CLAM amount established during the 2017 Vodafone India-Idea Cellular merger.
However, brokerage firms remain cautious on the stock’s prospects. Axis Capital maintained its ‘Reduce’ rating with a target price of ₹9.45, citing the company’s bloated balance sheet and lagging capital expenditure compared to rivals Bharti Airtel and Reliance Jio. Emkay retained a ‘Sell’ rating with ₹6 target, highlighting that current EBITDA remains insufficient to meet capex requirements and the ₹1.2 lakh crore deferred spectrum payment obligations stretching until FY44.
The settlement provides some near-term breathing room, but analysts warn that Vodafone Idea’s financial position remains stressed despite repeated relief packages. The company still faces substantial debt obligations and competitive pressure in India’s telecom market.