Vodafone Offloads Stake in Indus Towers to Mitigate Debt

Vodafone sells a 3% stake in Indus Towers to pay off a USD 101 million debt and its Indian venture's dues. The transaction, valued at Rs 2,841 crore, reduces Vodafone's stake in Indus Towers below 1%. Remaining proceeds will fund Vodafone Idea's equity and MSA dues.

British telecom giant Vodafone has announced the sale of a 3% stake in Indus Towers, facilitating the payment of a $101 million debt and addressing outstanding dues of its Indian enterprise, Vodafone Idea. This financial maneuver is intended to stabilize Vodafone's fiscal position as it navigates hefty obligations within its operational structure.

The transaction, pegged at a considerable Rs 2,841 crore, is based on Indus Towers' stock value of Rs 358.75 each, following the latest closing price on the BSE. According to Vodafone's regulatory submission, this divestment is structured through an accelerated book build offering, effectively lowering its stake in Indus Towers to below a critical 1% threshold.

The telecom conglomerate had previously offloaded an 18% stake in Indus Towers for approximately Rs 15,300 crore. Vodafone plans to channel the remaining proceeds towards funding new equity shares of Vodafone Idea (Vi), subject to Vi's board approval, to settle the Master Services Agreements dues owed to Indus Towers—further safeguarding commitments within the telecom infrastructure space.

(With inputs from agencies.)