Indus Towers Ltd saw its shares fall over 5% on Wednesday following reports that Vodafone Group PLC is looking to offload nearly 10% of its stake for $1.1 billion. As of 10:52 AM, shares were trading 5.24% lower at ₹326.50 on the NSE.
Vodafone Group PLC was initially reported to be selling up to 9.94% of its stake in Indus Towers Ltd through a block deal today. The price range for the block deal was seen between Rs 310-341, potentially offering a 10% discount to the current market price at the upper limit. This sale was expected to raise Rs 9,140 crore, or $1.1 billion, for Vodafone.
Subsequent reports indicated that Vodafone PLC might increase the block size, potentially selling an 18% stake in Indus Towers via the block deal.
According to Nuvama Institutional Equities, if Vodafone’s increased block size holds true, the passive flow from MSCI and FTSE could amount to nearly $200 million, impacting around 45 million shares over three days. Both index adjustments are expected to occur on separate days.
Vodafone currently holds a 21.05% stake in Indus Towers, India’s largest mobile tower installation company, according to the latest quarterly shareholding pattern.
