British telecom giant Vodafone PLC on Tuesday will sell a 10 percent stake in Indus Towers, a telecom tower company, to raise up to Rs 9,000 crore through block deals.
Under the terms of the transaction, the shares are being offered at a discount of 10 percent to Tuesday’s closing price of Rs 344 per share. Shares are offered at a rate of Rs 310 to Rs 341 per share. Vodafone PLC currently has a 21.5 percent stake in Indus through various group entities and will use the proceeds to repay its own debts.
BoFA Securities India, Morgan Stanley India Company, Jeffries India and BNP Paribas Securities India are managing the sale, under the terms of the transaction. Besides Vodafone PLC, Bharti Airtel also owns a 48 percent stake in Indus Towers, which has 220,000 towers across India.
Vodafone PLC has also diluted its stake in mobile operator Vodafone Idea after the Indian company raised Rs 18,000 crore through a follow-on offering. Following the offer, Vodafone PLC’s stake will be diluted to 18 percent in Vodafone Idea Ltd. Vodafone Idea plans to use the proceeds to launch its 5G-based telecom services in India.
In May, Vodafone Idea reported a net loss of Rs 7,674.6 crore, up 19.5 per cent in the fourth quarter (January-March) of FY24 from Rs 6,418.9 crore in the corresponding quarter of FY23 due to higher expenses and stagnant income.
For FY24, net loss widened to Rs 31,238 crore, up 6.6 per cent from Rs 29,301 crore in FY23. Vodafone PLC has decided not to invest further in India after its Indian arm reported huge losses.
First print: June 18, 2024 | 6:34 PM IST