Stock to Watch -

IDEA

Stock to Watch -

Vodafone Idea The company has reached an agreement with the Vodafone Group and entered into an amendment agreement to the Implementation Agreement (IA dated March 20, 2017) with its promoter or promoter group shareholders. An amount of Rs 5,836 crore is receivable from Vodafone Group promoters as per the amended agreement. Of this, a defined amount of Rs 2,307 crore will be released by the Vodafone Group promoters over the next 12 months. The IA governs the Contingent Liability Adjustment Mechanism (CLAM) established at the time of the merger of erstwhile Vodafone India and Idea Cellular, and the Amendment Agreement records the discharge of such CLAM. A portion of the CLAM amount is secured through the earmarking of 328 crore equity shares of the company by certain Vodafone Group shareholders for a period of five years. As on the date of the Amendment Agreement, the market value of the earmarked shares stands at Rs 3,529 crore, based on the closing market price of Rs 10.76 per share on the National Stock Exchange of India. All this is for information. This is not a buy/sell recommendation. Thank you, Technofunda24