Mumbai/IBNS, Jan. 1 -- Shares of Vodafone Idea surged nearly 10 per cent on Thursday after the company reached a settlement with Vodafone Group over long-pending contingent liabilities arising from the 2017 merger of Vodafone India and Idea Cellular, media reports said.

Under the revised arrangement, Vodafone Idea is set to receive Rs 5,836 crore, of which Rs 2,307 crore will be paid in cash over the next one year.

In an exchange filing, the company said the remaining Rs 3,529 crore will be raised through the sale of equity shares held by certain Vodafone Group shareholders.

The company further clarified that a portion of the contingent liability adjustment mechanism has been secured through the pledging of 328 crore equity shares by s...