Vodafone Group Plc to offload Indus Towers stake via Rs 2,700 crore block trade at slight discount

Vodafone Group Plc has announced its intention to divest its remaining stake in Indus Towers, amounting to 3 percent or 7.9 crore shares. This sale aims to raise approximately Rs 2,700 crore, which will be utilized to repay about $101 million in outstanding dues. Any residual proceeds will be directed towards Vodafone Idea's outstanding Master Services Agreement (MSA) dues to Indus Towers.

The block trade, managed by brokers Kotak and BofA, will be executed at a price range of Rs 343-358 per share, representing a discount of up to 4 percent. Bharti Airtel, the other promoter entity, holds a 50 percent stake in Indus Towers.

This move marks the completion of Vodafone Group Plc’s exit from Indus Towers. Earlier this year, Vodafone had reduced its stake by 18 percent, generating Rs 15,300 crore. The proceeds from this stake sale are part of CEO Margherita Della Valle’s strategy to reduce exposure to underperforming markets.

On December 4, shares of Indus Towers closed 1.5% higher, while Vodafone Idea shares surged 4.26%. However, on a year-to-date basis, Vodafone Idea shares are down by 50%. As of September 30, Foreign Institutional Investors (FIIs) hold a 24.2% stake in the company.

The year 2024 has seen numerous multinational companies capitalizing on a stock market boom to divest stakes in local units, contributing to a record $25 billion in secondary market share sales. Indian companies have been allocating nearly half of the capital raised through qualified institutional placements (QIPs) to reduce debt and streamline their balance sheets, with future capital expenditure and inorganic growth initiatives emerging as key focus areas for fundraising.