Vodafone Group Plc is gearing up to invest up to Rs 3,000 crore in Vodafone Idea Ltd following the sale of its stake in Indus Towers Ltd, according to sources familiar with the matter.
The British telecom giant recently announced the sale of an 18 percent stake in Indus Towers for approximately Rs 15,300 crore. Proceeds from this sale will primarily be used to repay a substantial portion of its outstanding bank borrowings secured against Indus Towers shares.
Further monetization efforts, including discussions with Bharti Airtel for an additional stake sale in Indus Towers, could potentially generate an additional Rs 2,500 crore for Vodafone Group. This capital, along with potential debt financing, is expected to fuel Vodafone Group’s substantial equity infusion into Vodafone Idea.
The move follows Vodafone Idea’s successful Rs 18,000 crore follow-on public offering in April 2024, which attracted investments from prominent entities such as GQG Partners, Fidelity, HDFC MF, and Motilal Oswal MF. These funds are earmarked to bolster Vodafone Idea’s 5G network deployment and strengthen its 4G coverage across key regions in India.
This strategic investment by Vodafone Group underscores its commitment to supporting Vodafone Idea amid efforts to enhance its operational capabilities and competitive positioning in India’s telecom sector.