Shares worth ₹2,802 crore of Indus Towers were sold in a block deal on December 5, with Vodafone Group Plc likely divesting its remaining 3% stake in the telecom infrastructure company. Approximately 8 crore shares changed hands at an average price of ₹354 per share.
Following the transaction, Indus Towers’ stock surged 5% in early trade, reaching ₹365.40 on the NSE at 9:17 am. Over the past year, the company’s shares have rallied by more than 95%, pushing its market capitalisation above ₹96,000 crore.
Vodafone’s Strategic Exit
This block deal marks Vodafone’s complete exit from Indus Towers. The sale, conducted through an accelerated book-build offering, was primarily aimed at repaying loans secured against Vodafone’s Indian assets.
Vodafone’s exit follows sustained pressure from lenders, including BNP Paribas, HSBC, and Bank of America, to settle debts tied to Vodafone Idea’s rights issue. In June 2024, Vodafone sold an 18% stake in Indus Towers for ₹15,300 crore, using the proceeds to reduce its outstanding loans.
Bharti Airtel and Market Implications
Post this transaction, Bharti Airtel remains the largest shareholder in Indus Towers, holding a 50% stake. The proceeds from Vodafone’s latest divestment are expected to address $101 million in debt repayments, with ₹1,900–2,000 crore likely to be infused as equity into Vodafone Idea (Vi). This equity injection could help Vi clear dues owed to Indus Towers under their Master Services Agreements.
Analyst Outlook
Citi maintains a ‘buy’ rating on Indus Towers with a target price of ₹458. The brokerage anticipates dividends of ₹11–12 per share for H2 FY25, potentially exceeding ₹20 per share annually in FY26 and FY27, offering a dividend yield of 6% at current levels.
Kotak Mahindra Bank and Bank of America reportedly acted as brokers for the transaction, signaling the final chapter in Vodafone’s gradual exit from the Indian telecom market.
