On December 5, shares of Indus Towers worth ₹2,802 crore were sold via a block deal, with Vodafone Group Plc likely as the seller. Approximately 8 crore shares, representing a 3% stake, changed hands at an average price of ₹354 per share. Following the deal, Indus Towers’ stock surged 5% in early trade, reaching ₹365.40 on the NSE by 9:17 AM. Over the last year, the stock has gained more than 95%, with its market capitalization now exceeding ₹96,000 crore.
Vodafone’s decision to divest its remaining 3% stake in Indus Towers marks its complete exit from the Indian telecom infrastructure firm. This move comes amidst lender pressure to repay debts secured against its Indian assets. The proceeds from the sale will primarily go toward settling $101 million in borrowings, with an estimated ₹1,900-2,000 crore expected to be infused as equity into Vodafone Idea Ltd (Vi) to clear dues owed to Indus Towers under existing agreements.
The block deal is seen as the culmination of Vodafone’s phased withdrawal from Indus Towers, following its earlier 18% stake sale in June 2024, which raised ₹15,300 crore. Brokerage firm Citi has a “buy” rating on Indus Towers, citing potential dividend payouts of ₹11-12 per share for H2 FY25, with annual payouts exceeding ₹20 per share by FY26, offering an attractive 6% dividend yield. Bharti Airtel remains the largest shareholder in Indus Towers, holding a 50% stake. Kotak Mahindra Bank and Bank of America reportedly acted as brokers for this transaction.
