Indus Towers Share Price in Focus: 98.71% Growth and Vodafone’s Exit

As of 10:35 AM on December 6, 2024, Indus Towers share price is trading at ₹368.75, reflecting an increase of ₹5.20 or 1.43% on the day. The stock opened at ₹368.00 and reached an intraday high of ₹373.25. Over the past 5 days, the stock has gained ₹21.95, representing a rise of 6.32%. Looking at the past year, Indus Towers has shown impressive growth, with its share price surging by ₹183.30, or 98.71%, from this time last year. 

Indus Towers: Vodafone’s Exit and Block Deal

On December 5, 2024, Vodafone Group Plc sold its remaining 3% stake in Indus Towers through a block deal involving 7.92 crore shares or 3% of the company’s equity. The shares were traded at ₹354 per share, totalling ₹2,802 crore. This marks Vodafone’s complete exit from Indus Towers, now Bharti Airtel’s subsidiary.

The transaction, often referred to as a “clean-up trade,” also involved other stakeholders like Omega Telecom Holding and Usha Martin Telematics planning to sell their stakes. The deal size ranged between ₹2,716.9 crore and ₹2,835.8 crore.

Vodafone Group will use part of the proceeds to repay ₹856 crore ($101 million) in borrowings. The remaining ₹1,900 crore will be reinvested into Indus Towers, which is expected to reduce overdue receivables from Vodafone Idea, improving cash flows for the company. Indus Towers’ outstanding receivables are expected to drop from ₹3,500 crore to ₹1,600 crore, boosting its FY25 free cash flow by ₹1,900 crore to ₹6,200 crore.

About Indus Towers

Indus Towers is a major provider of telecom tower services in India. The company sets up, operates, and maintains wireless communication towers. It is one of the largest tower companies in India, based on the number of towers and co-locations it operates. Indus Towers offers its towers for shared use, primarily to wireless telecom service providers, through long-term contracts.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.