Bharti Airtel buys another 1% stake in Indus Towers

19 Jun 2024 , 11:53 AM

Sunil Bharti Mittal-led Bharti Airtel has bought an extra 1% stake in Indus Towers, only hours after it was revealed that the UK-based Vodafone group had sold its 20% ownership in the towers company.

The telecom operator said in an exchange filing that it purchased 2.695 crore shares of Indus Towers ‘on-market’. Bharti Airtel had received the directors’ approval to acquire up to 2.7 crore shares.

The company presently owns 47.95% of Indus Towers. Following today’s transaction, it will own 48.95% of Indus Towers.

Vodafone Group likely sold a 20% stake in Indus Towers in a block auction today, with an average price of ₹312 per share. According to sources, the buyers in today’s block are domestic mutual funds and FIIs, as well as an existing significant investor.

According to reports, private equity firm I Squared Capital and alternative investment firm Stonepeak were among the buyers bidding for Vodafone’s share in the cell tower operator.

Based on this, Abhilash Pagaria of Nuvama Alternative & Quantitative Research predicted that Indus Towers’ float adjustment in passive indexes will occur within the next three days.

Pagaria anticipated a global passive flow impact of $200 million from the float adjustment. According to the analyst, Indus Towers’ float adjustment in the MSCI index is likely to generate an inflow of approximately $130 million, with an additional $65 million coming from movements on the FTSE.

At around 11.45 AM, Bharti Airtel was trading 0.77% lower at ₹1,417.40 per piece, against the previous close of ₹1,428.35 on NSE. The counter touched an intraday high and low of ₹1,434.80, and ₹1,409.10, respectively.

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