Indus Towers shares jump 5% after Vodafone sells stake

Indus Towers jumped 5% to hit an intra-day high of Rs 375 after British telecom giant Vodafone Group sold its remaining 3% stake in the company.

This sale of 79.2 million shares was done through an accelerated book-build offering. The decision is part of Vodafone’s larger plan to divest from its investments in India, simplify its operations and strengthen its financial position. The company intends to use the funds primarily to settle borrowings of $101 million secured by its assets in India.

The announcement comes after Vodafone sold an 18% stake in Indus Towers due in June 2023, raising proceeds of $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 reported a 71.7% rise in net profit to Rs 2,224 crore in Q2 FY25 on the back of robust tower additions and steady recovery of past dues from Vodafone Idea.

Its operating revenue grew 4.7% to Rs 7,465.3 crore as compared to Rs 7,132.5 crore in the same quarter last year.

Indus Towers vs Nifty 50

Indus Towers stock has given a return of 3.7% in the last five trading sessions. It has increased investor wealth by 6.2% in the last one month and over 9% in the last six months. The stock has gained 79% year-to-date and over 95% in the last one year.

To compare, the benchmark index, Nifty 50 has gained 0.6% in the last five trading sessions. The index has returned 0.8% in the last one month and 8% in the last six months. So far this year, the index has returned 12.3% and 17% in the last one year.