Vodafone offloads 19% stake in Indus Towers for ₹17,000 crore
Vodafone Group PLC, the UK-based telecom giant, has sold a 19% stake in India's largest mobile tower installation company, Indus Towers, through block deals. The transaction involved trading of 53.3 crore stocks, representing 19% of the company's equity, in large deals valued at nearly ₹17,000 crore. This sale marks the second-largest block agreement in India after the ITC transaction in March, where British American Tobacco sold a 3.5% stake for around ₹17,485 crore.
Indus Towers's share value declines post-deal
Following the block deal, shares of Indus Towers dropped by 6% to ₹320.60, while Vodafone Idea (Vi) stock also experienced a decrease, trading 1.3% down at ₹16.64. The block price range was set at ₹310-341 per stock, according to the term sheet issued by bankers. Prior to this transaction, Vodafone PLC held a 21% share in the tower company after selling a 7.1% stake in early 2022.
Vodafone's ownership in Indus Towers reduces
Vodafone has been trying to find a buyer for its remaining shareholding in the business for several years, after an agreement with a Canadian pension fund collapsed in 2022. Bharti Infratel and Indus Towers merged in late 2020, with Bharti becoming the biggest shareholder in Indus, holding 47.95%. After the recent transaction, Vodafone Group's ownership in Indus Towers has reduced to 3.1%. Bharti Airtel announced that it has bagged a 1% equity stake in Indus Towers following the block deal.
Proceeds to be used for debt reduction
The block deal led to a surge in volumes in the stock and a decrease of around 10% to a low of ₹311.40 on the National Stock Exchange (NSE). The proceeds from this stake sale are marked for reducing Vodafone's significant $42.17 billion net debt.
