Vodafone Idea has received positive feedback from Nuvama Institutional Equities, Dixon Technologies and ICICI Securities, indicating a potential path to survival for the struggling telecom company. While Bharti Airtel rolled out a tariff hike on Friday, Vodafone Idea is expected to witness inflows of over $278 million and Suzlon Energy saw a significant increase in share price. Market experts discuss the potential opportunities in the telecom sector on Business Today TV's daily market show, with Vodafone Idea likely to opt for a payment plan to ease financial burden.
Vodafone is expected to pare its 18% stake in Indus Towers in a block deal, with a floor price range of Rs 310-341 per share. Brokers Bank of America, Morgan Stanley, and BNP Paribas are expected to be involved in the deal. The transaction is seen as a positive move for Vodafone, which may use the proceeds to pay off debt and potentially invest in the company. There is also speculation that Bharti Airtel may increase its stake in the entity, currently at 47.95%, to 50%. Stay updated on the latest business news and stock market updates through Zee Business.
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.
Bharti Airtel's chairman, Sunil Mittal, is urging rival operator Vodafone Idea to pay its debts with Indus Towers, stating that the tower firm will not provide new services to the telco until payments are made. Reports state that Vodafone Idea currently owes Indus Towers nearly $1.2 billion. Mittal warns that Vodafone Idea will not be able to use Indus' 5G towers unless payments are made, leading to potential consequences for the company's network and services. Vodafone Idea recently concluded a public offering and raised funds, but stated that they will not be using the proceeds to pay debts with vendors.