UK-based Vodafone Plc, which owns a 19% stake in Vodafone Idea, was considering transferring part of its shareholding to the company itself for the Indian telco to hold in its treasury, Bloomberg reported, citing people familiar with the matter. It added that the share transfer would take place instead of Vodafone injecting more cash into the Indian business.
The company’s shares sharply rallied more than 8% on Monday despite the overall stock market crash following the report, which claimed that the move could boost the balance sheet of the loss-making Vodafone Idea, and help its current efforts to raise debt.
Vodafone Idea’s clarification
After exchanges sought clarification from Vodafone Idea following the sharp surge in share price, the company said that it has not yet received any communication related to this from the Vodafone Group.
Vodafone Idea said that the report may possibly be referring to disclosures already made in December last year about the Contingent Liability Adjustment Mechanism (CLAM) arrangement. As part of the December exchange filing, which the company reshared yesterday, Vodafone Idea had announced that it amended a major agreement with its UK-based parent company to secure the recovery of nearly Rs 5,836 crore linked to liabilities arising from the 2017 Vodafone-Idea merger.Vodafone Idea share priceVodafone Idea shares have seen a significant surge recently, jumping 10% in one week and 28% in one month. Shares of the telecom company are up more than 2% in 2026 so far.
In the longer term, the stock jumped over 67% in one year, 69% in three years and more than 34% in five years. The company currently has a market capitalisation of more than Rs 1.26 lakh crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
