Vodafone Divests Full Stake In Indus Towers For Rs 2,800 Crore, Uses Funds To Clear Debt
Vodafone used Rs 890 crore from the proceeds to pay outstanding Master Service Agreement dues to Indus Towers.
Vodafone has offloaded its entire stake in Indus Towers Ltd. for Rs 2,800 crore, the telecom infrastructure firm said on Friday. The British telecom firm used Rs 890 crore from the proceeds to pay outstanding Master Service Agreement dues to Indus Towers.
The telecom services provider sold 7.92 crore shares, representing 3% stake in Indus Towers on Dec. 5, the company said in a regulatory filing. The company held 3% stake through its indirect wholly owned subsidiaries, Omega Telecom Holdings Pvt. and Usha Martin Telematics Ltd.
"Following this, Vodafone's obligations to Indus under the Security Arrangements have now been satisfied in full," the filing said.
In addition, the company used the residual proceeds of Rs 1,910 crore to acquire funds in Vodafone Idea. Vodafone's shareholding in Vodafone Idea increased to 24.39%.
Vodafone Idea allotted 169.3 crore equity shares to Omega Telecom Holdings Pvt. and Usha Martin Telematics Ltd. at an issue price of Rs 11.28 apiece, which includes a premium of Rs 1.28 per equity share, the company said on Thursday.
The telecom firm allotted 108.5 crore equity shares to Omega, while Usha Martin bagged 60.9 crore equity shares. As a result, the Aditya Birla Group company's paid-up equity share capital increased to Rs 71,393 crore, comprising 7,139.3 crore equity shares with a face value of Rs 10 each.
Indus Towers stock fell as much as 3.43% during the day to Rs 319.45 apiece on the NSE. The stock closed 3.14% lower at Rs 320.40 per share. This compares with a 0.4% decline in the benchmark Nifty 50. It has risen 49.54% in the last 12 months.
Of the 24 analysts tracking the company, 12 maintain a 'buy' rating, seven recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 28.1%.
