Vodafone Group Plc (“Vodafone”) has successfully completed the placement of 79.2 million shares in Indus Towers Limited (“Indus”), representing 3.0% of Indus’ outstanding share capital. The shares were sold through an accelerated book build offering, raising INR 28.0 billion (approximately US$330 million) on December 5, 2024.
The proceeds from the placement have been allocated strategically. A portion of INR 8.9 billion (US$105 million) was used to fully repay outstanding borrowings to Vodafone’s lenders, secured against Vodafone’s Indian assets, along with covering transaction fees. The remaining INR 19.1 billion (US$225 million) was used for a preferential allotment of 1.7 billion equity shares in Vodafone Idea Limited (“Vi”), increasing Vodafone’s stake in Vi to 24.39%, up from 22.56%.
Vodafone Idea utilized the raised capital to settle outstanding dues to Indus Towers, particularly under the Master Service Agreement (MSA). This move also ensures that Vodafone’s obligations to Indus under the Security Arrangements have now been fully satisfied.
This strategic financial maneuver strengthens Vodafone’s position in the Indian telecommunications sector and aligns with its broader goals for debt reduction and investment in key assets.
