Vodafone Divests 18% Stake in Indus Towers for Rs 15,300 Crore

In a significant move within the telecom sector, British telecom giant Vodafone announced on Wednesday its decision to sell an 18 per cent stake in Indus Towers, amounting to approximately 1.7 billion euro (around Rs 15,300 crore). This transaction marks a pivotal shift in the ownership structure of India's largest mobile tower installation company, Indus Towers. Concurrently, Bharti Airtel has strategically increased its stake in Indus Towers by acquiring 2.69 crore shares, equivalent to a 1 per cent stake, at an average price of Rs 320 per share, culminating in a transaction value of Rs 862.38 crore, according to the bulk deal data available.

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Vodafone's divestiture of 484.7 million shares represents a significant portion of Indus Towers' share capital and was executed through an accelerated book-build offering. The proceeds from this sale, amounting to Rs 153.0 billion (1.7 billion euro), are earmarked for the repayment of Vodafone's existing bank borrowings of 1.8 billion euro, which were secured against the company's assets in India. Post-transaction, Vodafone's stake in Indus Towers has been reduced to 3.1 per cent, translating to 82.5 million shares.

Bharti Airtel's acquisition is part of its approval from the Special Committee to acquire up to 27 million equity shares of Indus Towers. With this latest acquisition, Airtel's stake in Indus Towers has risen to 48.95 per cent from the previous 47.95 per cent. This move underscores Airtel's commitment to consolidating its position within the telecom infrastructure sector.

The bulk deal data from the National Stock Exchange (NSE) reveals that alongside Bharti Airtel, entities such as Authum Investment and Infrastructure, Ghisallo Capital Management LLC, Kotak Securities, and SBI Mutual Fund (MF) collectively acquired a total of 11.20 crore shares of Indus Towers. Notably, SBI MF secured 3.58 crore shares in two separate tranches, highlighting the investment community's growing interest in India's telecom infrastructure.

Furthermore, Kotak Securities engaged in both buying and selling activities concerning Indus Towers' shares, purchasing 1.45 crore shares and selling 73.07 lakh shares at an average price of Rs 331.25 each, resulting in a deal value of Rs 242.06 crore.

As per the March quarter shareholding pattern on the Bombay Stock Exchange (BSE), Vodafone Group, through its affiliates, held a 21.06 per cent stake in Indus Towers prior to this transaction. The market response to these developments saw the scrip of Indus Towers experiencing a decline on both NSE and BSE, closing at Rs 334 apiece with a decrease of over 3 per cent.

This series of transactions not only alters the ownership landscape of Indus Towers but also reflects the dynamic nature of India's telecom sector as major players like Bharti Airtel seek to strengthen their infrastructure capabilities amidst growing demand for mobile and internet services across the country.