Stake-sale overhang likely to keep Indus Towers stock under pressure

Rental renegotiations another dampener for the stock

The twin rounds of stake sale in Indus Towers (Indus) by Vodafone Group Plc (Vodafone Plc) will have multiple implications for Vodafone Idea (Vi), Bharti Airtel (Airtel), and Indus. The stake sale helps Vi monetise its assets and allows Airtel to consolidate its holdings in Indus. The impact on Indus is mixed. Vodafone Plc had 28.1 per cent stake in Indus. It sold 2.4 per cent stake on Thursday and followed it up with an announcement that it would sell an additional 4.7 per cent stake to Airtel on Friday. 

For the country’s largest tower company, the sale of stake is