Indus Tower Stock Fall 4% As Vodafone Offloads Its Stake
Vodafone plans to reduce its substantial net debt of USD 42.17 billion with the revenues from this stake sale
Stock of Indus towers over 4 per cent in the Wednesday trading session block deal in which Vodafone offloaded around 20 per cent stake.
Indus Tower stocks traded at Rs 329 with 4.27 per cent loss in the afternoon session on the National Stock Exchange (NSE).
The seller was most likely Vodafone Group in the UK. A total of 53.30 crore crore shares changed hands in a Rs 17,065 crore block deal.
Bharti Airtel said shortly after the block deal that it had purchased a 1 per cent ownership holding in Indus Towers. The buyers for Vodafone's share in the cell tower company reportedly included alternative investment firm Stonepeak and private equity firms I Squared Capital.
Vodafone planned to reduce its substantial net debt of USD 42.17 billion with the revenues from this stake sale, according to reuters.
Vodafone currently owns a 21.5 per cent share in the mobile tower operator through its multiple subsidiaries.
Vodafone first declared its plans to sell its 28 per cent share in Indus back in 2022, but things have moved slowly, with only a small portion of the company having been sold thus far.
JPMorgan analysts pointed out that the possible USD 2.3 billion cash inflow from the sale of Vodafone Group's interest in Indus Towers might allow for quicker debt repayments to suppliers like Indus Towers and potentially even allow for a special dividend for the owners of the Indian tower company.
