Vodafone Group Plc is set to sell almost 10% of its shares in Indus Towers through block deals, with a price band representing a 10% decrease from its Tuesday closing price. The transaction is expected to fetch an estimated amount between ₹8,308 Crore and ₹9,138 Crore. The proceeds from the sale are likely to be invested in Vodafone Idea, as the telecommunications company looks to reduce its net debt of $42.17 billion. This move is part of Vodafone's plans to divest its 28% stake in Indus Towers by 2022.
Vodafone to Sell Indus Towers Stake, Invest Proceeds in Vodafone Idea
Telecommunications giant Vodafone Group Plc is preparing to sell nearly 10% of its shares in Indus Towers, one of India's leading telecom tower companies. The sale, which is expected to raise between ₹8,308 Crore and ₹9,138 Crore, is part of Vodafone's broader strategy to reduce its global debt and invest in its Indian operations.
Background
Indus Towers was formed in 2007 as a joint venture between Bharti Airtel, Vodafone India, and Idea Cellular. The company operates over 154,000 telecom towers across India, making it one of the largest tower companies in the country. Vodafone currently owns a 28% stake in Indus Towers, making it the largest shareholder after Bharti Airtel (42%) and Idea Cellular (26%).
Rationale for the Sale
The sale of Indus Towers shares is part of Vodafone's ongoing efforts to reduce its global debt burden, which currently stands at $42.17 billion. The proceeds from the sale will be primarily invested in Vodafone Idea, the Indian telecom joint venture between Vodafone and Idea Cellular.
Vodafone Idea has been struggling financially in recent years, due to intense competition from rivals such as Reliance Jio and Airtel. The company is facing high debt levels and has been working to improve its financial performance. The investment from the Indus Towers sale is expected to help Vodafone Idea reduce its debt and invest in network expansion and 5G services.
Impact on Vodafone Idea
The investment from the Indus Towers sale is seen as a positive development for Vodafone Idea. The company has been struggling to compete with its rivals, and the additional funding will help it to improve its network and services. This is expected to lead to increased revenue and profitability for Vodafone Idea in the long term.
Top 5 FAQs
1. Why is Vodafone selling shares in Indus Towers? To reduce its global debt and invest in Vodafone Idea.
2. How much is Vodafone expected to raise from the sale? Between ₹8,308 Crore and ₹9,138 Crore.
3. Who are the other major shareholders in Indus Towers? Bharti Airtel (42%) and Idea Cellular (26%).
4. What is Vodafone's ultimate goal with the sale? To reduce its debt and improve the financial performance of Vodafone Idea.
5. How will the sale affect Vodafone Idea? The investment from the sale is expected to help Vodafone Idea reduce its debt, improve its network, and increase revenue and profitability.
The highly anticipated Glen Sannox ferry has finally been delivered, seven years after it was launched into the Firth of Clyde with much fanfare by Scottish First Minister, Nicola Sturgeon. The project has been plagued by numerous delays, contractual disputes, and cost overruns, ultimately resulting in the nationalisation of the Ferguson Marine shipyard. This delayed delivery has caused frustration for islanders who were hopeful for a new lifeline ferry.
India has become a hub for global cooperation and progress in the business sector with a string of major events and schemes. From hosting the International Cooperative Alliance Assembly to launching the White Revolution 2.0 for the dairy sector, India has been making strides towards economic growth and development. The country also witnessed key agreements and discussions with countries like the US, Japan, and Bhutan, showcasing the strengthening of international relations and cooperation in the field of business. In addition, the Indian government's key schemes, including the Middle Class Schemes and the FCI equity infusion, have received praise and recognition from top leaders like Amit Shah. Stay updated with the latest developments in the Indian business world.
Personal finance expert Martin Lewis has raised concerns over the severe repercussions of missing a single Council Tax payment. In a recent TV segment, Lewis criticized the policy of making individuals pay for an entire year's worth of taxes within three weeks of missing a monthly payment. He also highlighted the impact of this burden on people's financial well-being, the economy, and the healthcare system. While the Local Government Association acknowledged the need for fair collection policies, they also agreed with Lewis that the use of bailiffs should be a last resort.
Vivo has expanded its Y-series in India with the launch of the Vivo Y300, equipped with advanced features and innovative technology. The smartphone offers a high-end Sony IMX882 main camera, along with AI Aura Light and a 2x portrait feature for a superior photography experience. Available in three different colors and two storage variants, the Y300 is priced at Rs 21,999 and Rs 23,999 respectively. It also comes with a high-gloss metal frame, 6.67-inch AMOLED punch-hole display, and a 5000 mAh battery with 80W FlashCharge. With a user-friendly Funtouch OS and IP64 dust and water resistance rating, the Vivo Y300 is the perfect device for tech-savvy individuals.
Tesla CEO Elon Musk praised India for successfully counting 640 million votes in just one day for their Lok Sabha elections. In contrast, California, with a significantly smaller population, is still struggling to tally the results of their presidential election which took place 18 days ago. Musk's post on X highlights the efficiency of India's electoral process and the shortcomings of the US system, which has led to a delay in vote counting in the most populous state.
With the median price of a single-family home in California reaching a staggering $868,150 in September, the state's high home prices have created a wealth gap that disproportionately affects communities of color. According to the Legislative Analyst's Office, the cost of buying a mid-tier home has increased by 84% since January 2020, making it unaffordable for the majority of Californians. This poses serious challenges for low-income households and people of color who are already struggling to keep up with the state's high cost of living. As California grapples with mounting economic divides, the need for affordable housing solutions becomes more urgent. Help us address this pressing issue by joining our year-end campaign to raise $50,000 and support local reporting on important issues like this.
Zomato CEO, Deepinder Goyal, responds to user feedback on the company's "Food Rescue" initiative, showing his commitment towards innovation and open recruitment. The feature, launched on October 10, 2024, offers discounted meals from cancelled orders to customers within a 3km radius, aiming to reduce food wastage and provide affordable options. While there have been concerns raised about safety and fairness, Goyal points out the efforts to ensure proper packaging and limit the number of cancellations per month. The company is also exploring partnerships with food banks and charities to further reduce food wastage.
BTTV, a leading market news channel, introduces a new show called 'Daily Calls' aimed at providing viewers with expert insights and guidance on navigating the market. With access to live sessions featuring experienced analysts, the show aims to assist viewers in making informed investment decisions and building a strong portfolio. Don't miss out on this valuable opportunity to gain clarity and understanding in today's uncertain market.
Adani Group is under scrutiny for alleged violations of disclosure norms concerning a US bribery case and the subsequent cancellation of major deals by Kenya. While the conglomerate has denied any involvement in the case, stock exchanges have sought explanations and experts believe that the Securities and Exchange Board of India (SEBI) may launch an investigation. The allegations, which include a criminal indictment and a civil complaint, could have significant consequences for Adani Group's reputation and access to international markets.
Outlandish, an e-commerce startup, is opening a new brick-and-mortar store in Santa Monica's 3rd Street Promenade, featuring a first floor of branded stalls and a second floor for shopping. The store aims to mix live online selling with in-person retail, as visitors can watch influencers and sellers on livestreams and even join in themselves. The concept taps into the growing trend of live shopping in the US, with TikTok itself actively promoting and hosting events centered around live selling. This move by Outlandish is in line with TikTok's efforts to recreate the success of its Chinese sister app, Douyin, which drives billions in annual product sales.