Vodafone Idea mulls complete stake sale in Indus Towers; UBS retains buy
In order to pare its debt, Vodafone Group is looking to sell its entire stake in Indus Towers.
As the debt-ridden telecom company Vodafone Idea is looking to pare its debt, it is planning to offload its entire stake worth $2.3 billion in Indus Towers.
The company through several group entities owns as much as 21.5 per cent stake in the mobile tower operator. The final size of the stake sale is yet to be determined and can be lower than 21.5 per cent.
On Friday, shares of the company ended higher by over 4 per cent at Rs 16.73 apiece on the BSE.
Here’s how brokerages view the development?
Global brokerage UBS sees the development as positive for Vodafone Idea. The brokerage has retained its ‘buy’ call on the counter with a target of Rs 18, implying an upside of nearly 8 per cent.
The brokerage said that the stake sale is highly likely, nonetheless the amount will likely not be as big as anticipated. Further, the move is deemed as positive for Vodafone. Unlikely that Bharti acquires entire stake from Vodafone, partial purchase to increase stake above 50% is possible, it added.
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