Shares of Vodafone Idea climbed higher over 4 percent on the stock Exchanges after the telecom operator said in a regulatory filing that it has received Rs 3,760.1 crore cash for its 11.15 percent holding in Indus Towers.
Notably, the stake sale was part of the merger deal between Bharti Infratel and Indus Towers to form a mega tower company. After amalgamation, Vodafone Group will hold 28.12 percent stake in the new entity, while the holding of Airtel Group will be about 36.7 percent. The cash proceeds from the stake sale will help Vodafone Idea partially pay for its government dues. Bharti Infratel said in the filing that confirmed the completion of the amalgamation said that "the Board has allotted 757,821,804 equity shares of Rs 10 each to the Vodafone group and 87,506,900 equity shares of Rs 10 each to PS Asia Holding Investments (Mauritius) Limited (Providence) aggregating to 28.12 percent and 3.25 percent respectively in the post-issue share capital of the company."
The rise in the stock price of Vodafone Idea is also being supported by talks of a consortium of investors comprising US-based Oaktree Capital Management and Varde Partners proposing to invest up to USD 2.5 billion in the telecom operator that owes more than Rs 50,000 crore to the department of telecommunications as adjusted gross revenue dues.
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