Vodafone settles ₹5,836cr clam dispute with Vi—What it means
Vodafone just wrapped up a massive financial dispute with Vodafone Idea (Vi), finally closing the book on years of old legal and tax issues from before their 2017 merger.
The deal means Vi gets ₹5,836 crore—a sum that analysts say could help Vi amid its financial difficulties.
How the deal works: shares and cash
Vodafone is handing over 3.28 billion Vi shares (worth ₹3,529 crore), which would reduce Vodafone's stake in Vi from 16% to about 13%, based on current shareholding figures.
These shares will be sold off for Vi's benefit.
Plus, there's a €219 million cash payment that basically cancels out what Vi owed Vodafone for services—so no extra money leaves either company.
Why this matters for Vi right now
This settlement clears up a nine-year headache and gives Vi some breathing room as they face huge debts.
Investors seemed relieved: after the news broke, Vi's stock shot up 9% on January 1, while Vodafone's ticked up slightly too.
For anyone following India's telecom drama, this is one less cliffhanger to worry about.