Indus Towers rose as much as 5% to hit an intra-day high of Rs 375 after British telecom giant Vodafone Group divested its remaining 3% stake in the company.
The sale, comprising 79.2 million shares, was conducted through an accelerated book-build offering. This decision is part of Vodafone’s larger plan to divest from its investments in India, simplify its operations, and bolster its financial standing. The company intends to utilise the funds mainly to settle $101 million in borrowings that are secured by its assets in India.
The announcement comes after Vodafone sold an 18% stake in Indus Towers in June 2023, generating $1.82 billion. This larger-than-planned transaction helped the company significantly reduce its debt and marked a strategic shift away from its non-core markets.
Indus Towers’ performance in Q2
The company posted a 71.7% on-year jump in net profit to Rs 2,224 crore in Q2 FY25, on the back of strong tower additions and a steady collection of past overdues from Vodafone Idea.
Its revenue from operations rose 4.7% on year to Rs 7,465.3 crore compared to Rs 7,132.5 crore in the same quarter a year ago.
Indus Towers Vs Nifty 50
The stock of Indus Towers has given a return of 3.7% in the last five trading sessions. It has raised investors’ wealth by 6.2% in the last one month and over 9% in the past six months. The stock has risen 79% from year to date and more than 95% in the past one year.
To compare, the benchmark index, Nifty 50 has risen 0.6% in the last five trading sessions. The index has given a return of 0.8% in the last one month and 8% in the last six months. The index gave a return of 12.3% from year to date and 17% in the past one year.