Vodafone Idea gains post receiving US $200 million by Vodafone Group

Vodafone Group announced that it has accelerated payment of US$ 200 million to Vodafone Idea, which was due in September 2020, mainly to tide over any liquidity crisis arising out of COVID-19 pandemic.

According to a market report, UK-based Group has accelerated this payment under the contingent liability mechanism (CLM) to provide Vodafone Idea with liquidity in order to manage its operations as well as to support around 300 million Vodafone Idea customers & employees during this phase of emergency. Besides, health measures are also being taken as a result of the virus pandemic.

Following the decision by India's Supreme Court on the definition of adjusted gross revenue (AGR) in October 2019, India's telecom operators became liable for licence fees, penalties and interest dating back over 14 years. 

Under the terms of CLM, which took effect at the completion of the merger of Vodafone India and Idea Cellular, Vodafone Group is obliged to make payments to Vodafone Idea, where amounts paid pursuant to the contingent liabilities of Vodafone India exceed those of Idea Cellular.

Reacting to the news, on Thursday, the stock closed at Rs 4.33, up by 9.34 per cent or Rs 0.37 per share. The 52-week high is recorded at Rs 17.70 and the 52-week low is Rs 2.51 on BSE.