Indus Towers experienced a surge in its stock price, rising 5% after a block deal involving 8 crore shares, representing 3% of the company’s equity, traded at ₹354 per share. The transaction is valued at ₹2,802 crore. This development follows Vodafone Group Plc’s announcement to divest its remaining 3% stake in Indus Towers, which translates to approximately 79.2 million shares. The sale is being executed through an accelerated book-building process.
Recent Performance Highlights
The stock has demonstrated robust performance metrics:
- 5 days: 8.02% increase
- 1 month: 8.12% increase
- 6 months: 10.93% increase
- Year-to-date (YTD): 89.30% increase
- 1 year: 100.48% increase
- 5 years: 50.00% increase
- All time: 87.50% increase
Vodafone Group plans to utilize the proceeds from this sale primarily to repay its outstanding borrowings, secured against the company’s Indian assets. Any surplus funds after debt repayment will be directed to Vodafone Idea Limited (Vi). The funds will support a future equity issuance by Vi, with the aim of clearing outstanding Master Services Agreement (MSA) dues owed to Indus Towers.
In a strategic effort to streamline its financial position and address its liabilities in India, Vodafone has outlined that any unsold shares or unused proceeds post-repayment will be retained to guarantee Vi’s obligations under the MSA. This move reflects Vodafone’s ongoing efforts to stabilize its balance sheet while supporting its Indian operations.
As of 9:15 am the shares of Indus Towers were trading 3.40% higher at Rs 369.35 on NSE.
Indus Towers’ block deal and Vodafone’s divestment have garnered significant attention in the market, marking a pivotal moment for the company and its investors.
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