Vodafone Idea has used fund infusion from its global parent Vodafone Plc, to repay outstanding Master Service Agreement Dues (MSA) to Indus Towers. Vodafone Idea shares declined 3.4% on Friday.
In a filing to the London Stock Exchange on January 10, Vodafone Plc said that the obligations to Indus Towers under the security agreement had been satisfied in full.
On December 5, Vodafone had sold its remaining stake in Indus Towers and had fully exited the company. Vodafone Group Plc successfully completed the placing of its remaining 79.2 million shares in Indus Towers, representing 3.0% of Indus’ outstanding share capital, through an accelerated book-build offering.
It raised ₹2,800 crore through this sale, of which, ₹890 crore was used to fully repay outstanding borrowings to Vodafone’s existing lenders, which was secured against its Indian assets, and had settled transaction fees.
The residual proceeds of ₹1,910 crore was used to acquire 1.7 billion equity shares of Vodafone Idea through a preferential allotment of shares, thereby increasing its shareholding in Vodafone Idea to 24.39% from 22.56% earlier.
“Vi have used the proceeds from this Capital Raise to pay outstanding Master Service Agreement (MSA) dues to Indus. Following this, Vodafone’s obligations to Indus under the Security Arrangements have now been satisfied in full,” the filing by Vodafone Plc said.
Vodafone Idea Stock Price Trend
Vodafone Idea share price declined as much as 3.40% to ₹7.66 apiece on BSE, on Friday. The telecom stock has fallen over 16% in three months, while it has dropped more than 53% in six months.
Vodafone Idea had raised ₹18,000 crore last year through a Follow-on Public Offer (FPO), which was India’s largest FPO, at a price of ₹11 per share. Vodafone Idea shares are down more than 30% from its FPO price.
On BSE, Vodafone Idea stock price hit a 52-week high of ₹19.15 apiece on June 28, 2024, and a 52-week low of ₹6.60 apiece on November 22, 2024.
At 2:25 PM, Vodafone Idea shares were trading 2.27% lower at ₹7.75 apiece on the BSE, commanding a market capitalisation of over ₹54,017 crore.
