Indus Towers slips 10% after huge block deal; Vodafone Group likely seller

Till 09:22 am; a combined 47.34 million equity shares representing 1.76 per cent of total equity of Indus Tower have changing hands on the NSE and BSE

Shares of Indus Towers slipped 10 per cent to Rs 311.40 on the National Stock Exchange (NSE) in Wednesday’s intra-day trade after the British telecom giant Vodafone Group likely to sold a 9.94 per cent stake in telecom tower firm via block deals today.

Till 10:59 am; a combined 776.39 million shares representing 28.8 per cent of total equity of Indus Towers have changed hands on the NSE (734.57 million shares) and BSE (41.82 million shares).

Despite today’s decline, thus far in the calendar year 2024, shares of Indus Towers have outperformed the market by surging 63 per cent, as against 7 per cent rise in Nifty 50. The stock had hit a 52-week high of Rs 369.90 on June 3, 2024.

According to the terms of the transaction, the shares were offered at a discount of 10 per cent to Tuesday's closing price of Rs 344 per share, Business Standard reported earlier.

Also Read: Vodafone to offload 10% in Indus Towers to raise up to Rs 9,000 crore

Vodafone Group owned 21.5 per cent stake in Indus Towers via various group entities. The company will use the proceeds from the stake sale to repay its debt.

Vodafone Group’s wholly-owned indirect subsidiaries Euro Pacific Securities Ltd, CCII (Mauritius), Inc, Asian Telecommunication Investments (Mauritius) Ltd, Trans Crystal Ltd, Mobilvest, Prime Metals Ltd, Vodafone Telecommunications (India) Limited and Al-Amin Investments Ltd will be sold 268 million shares from their holdings.

Indus Towers is India’s leading provider of passive telecom infrastructure and it deploys, owns and manages telecom towers and communication structures, for various mobile operators.

The company’s portfolio of about 2,20,000 telecom towers makes it one of the largest tower infrastructure providers in the country with presence in all 22 telecom circles. Indus Towers caters to all wireless telecommunication service providers in India.