Shares of Vodafone Idea jumped 6.13% to ₹11.42 on Thursday afternoon, building on earlier gains following the telecom operator's disclosure of a revised settlement agreement with Vodafone Group promoters. The stock opened at ₹11.20 and touched an intraday high of ₹11.93, with heavy trading volumes of over 25,380 lakh shares by early afternoon.

The counter witnessed heightened activity with 56% sell orders against 44% buy orders as traders booked profits following the latest disclosure. The payment stems from an amended Contingent Liability Adjustment Mechanism (CLAM) agreement originally established during the 2017 merger between Vodafone India and Idea Cellular.

Revised Settlement Structure

The amended implementation agreement provides substantial financial relief to the debt-laden telecom operator through a structured payment mechanism:

Under the amendment agreement signed December 31, Vodafone Group promoters will release ₹2,307.00 crore in cash to Vodafone Idea over the next 12 months. Additionally, Vodafone Group has earmarked 3.28 billion shares in Vodafone Idea for the benefit of the Indian operator, worth ₹3,529.00 crore at current market prices. The company will have the right to instruct Vodafone to sell these shares in tranches, with proceeds transferred directly to Vodafone Idea.

CLAM Framework Background

The Contingent Liability Adjustment Mechanism was originally designed to cover pre-merger contingent liabilities related to legal, regulatory, tax and other matters of the two merging entities. Vodafone's maximum exposure under the mechanism was initially capped at ₹8,369.00 crore at the time of the merger. The Vodafone Group promoters had already paid ₹1,975.00 crore of the original CLAM amount, reducing the outstanding exposure to ₹6,394.00 crore with the deadline extended to December 31, 2025.

Brokerage Outlook Remains Cautious

Despite the settlement providing near-term relief, brokerage firms maintain a cautious stance 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 ₹6.00 target, highlighting that current EBITDA remains insufficient to meet capex requirements and the ₹1.20 lakh crore deferred spectrum payment obligations stretching until FY44.

Market Impact and Challenges Ahead

While the settlement provides some financial breathing room, 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. The revised CLAM settlement, while providing immediate liquidity support, addresses only a portion of the company's broader financial challenges in maintaining competitiveness against better-capitalized rivals.

Hyundai Motor India shares are positioned for market attention following the company's announcement of a weighted average price increase of 0.6% across its vehicle lineup, effective January 1, 2026. The South Korean automaker cited rising input costs, particularly higher prices of precious metals and other commodities, as the primary driver for this pricing adjustment.

Price Revision Details

The company outlined its pricing strategy in response to market pressures:

While the company continues to focus on cost optimization to minimize customer impact, management acknowledged that passing on some increased costs has become necessary to maintain operational sustainability.

Stock Performance Analysis

Hyundai Motor India's stock performance reflects mixed short-term sentiment with strong long-term fundamentals:

The stock's annual performance of approximately 28% demonstrates strong investor confidence despite recent minor declines.

Valuation Metrics

The company's valuation indicators present a mixed picture for investors:

These metrics indicate the stock trades at premium valuations, reflecting market confidence in the company's growth prospects despite current input cost pressures.

Technical and Shareholding Trends

Technical analysis reveals mixed signals with the stock trading below six of eight short- and medium-term moving averages, indicating some near-term bearish pressure. However, the stock maintains positions above 150-day and 200-day long-term moving averages, suggesting positive long-term trend continuation.

Institutional interest shows evolving patterns, with Foreign Portfolio Investors increasing their stake from 7.08% to 7.34%, while Mutual Funds slightly reduced holdings from 6.02% to 6.00% during the recent quarter.

The price adjustment strategy reflects broader industry trends as automotive manufacturers navigate rising raw material costs while balancing customer affordability and operational profitability.