Vodafone Plc exits Indus Towers, sells shares worth Rs 2,800 crore

 The company had been reducing its stake in Indus Towers for some time. In June last year, Vodafone sold 484.7 million shares, or an 18 per cent stake in Indus Towers, in block deals, raising Rs 15,300 crore.

 The latest transaction allowed Vodafone to repay its outstanding borrowings of Rs 890 crore to its existing lenders, secured against Vodafone's Indian assets.

The security package agreed upon during the merger of erstwhile Bharti Infratel and Indus Towers stipulated that Vodafone Plc's 21 per cent stake in Indus Towers was the primary pledge by its lenders against the $1.4 billion loan Vodafone Plc had taken in 2019 to participate in Idea's rights issue. Indus Towers has a secondary pledge on Vodafone Plc’s original 21 per cent stake, J P Morgan had said in June.

Vodafone's obligations to Indus under the security arrangements have now been satisfied in full. Shares of Indus Towers fell 3.22 per cent to Rs 320.15 in intraday trade on Friday.

 As of September 30, 2024, Omega Telecom Holdings held a 0.40 per cent stake in Vi, while Usha Martin's stake stood at 0.13 per cent.

These have now risen to 1.98 per cent and 1 per cent, respectively, after the share issue.

An extraordinary general meeting called by Vi on January 7 to seek shareholder approval saw the decision being supported.