In a note released on Tuesday, the brokerage said it expects MSCI flows to be around $70 million with 16 million shares, a one-day effect. Meanwhile, FTSE flows should be $36 million, accounting for 8.6 million shares, a half-day effect, the note said.
Nuwama further added that since the stake sale is of a large size, the float adjustment in the defunct indices will happen within a few days.
The UK-based telecom operator is likely to sell 9.94% stake in Indus Towers through a block deal. the economic times The deal was reported on Tuesday, citing two people aware of the deal. The shares are priced between Rs 310 and Rs 341 – down 9.9% to 0.8% from Tuesday’s close. The deal is valued at up to $1.09 billion, according to the term sheet.
The shares closed at Rs 16.87 on NSE on Tuesday, lower by Rs 0.14 or 0.84% from Tuesday’s close.
Vodafone Plc now holds 567.2 million shares, or a 21% stake, in the tower company following the sale of a 7.1% stake in early 2022.
Morgan Stanley, Bank of America, BNP Paribas and Jefferies are the bankers to the block deal.
Earlier, the biggest block deal was from British American Tobacco Plc (BAT), which sold 3.5% stake in ITC through an open market transaction in March, fetching Rs 17,485 crore.
Vodafone has been looking for a buyer for its remaining stake in the business for several years. According to media reports, a deal with a Canadian pension fund in 2022 fell through.
In February, KKR unit Silverview Portfolio Investment Pvt Ltd sold 130.8 million Indus shares, or 4.85%, at Rs 210.21 per share, raising Rs 2,749.61 crore. CPPIB sold 57.6 million shares, or 2.14%, in India’s largest telecom tower company at Rs 212.15 per share, raising Rs 1,223.46 crore.
Bharti Infratel and Indus Towers merged in late 2020. According to the tower company’s latest filing with the BSE, Airtel is the largest shareholder in Indus with 47.95%; Vodafone Group has 21.05%, and 30.97% stake is held by the public.
Vi accounts for 35-40% of the tower company’s revenue. Ambit Capital estimates that Vi still owes Indus about Rs 10,000 crore. However, recently Vi has started paying a lot of its dues to Indus, leading to a rise in the tower company’s net profit in the fiscal third quarter.
As of December-end, Indus operated 211,775 towers, with Bharti Airtel and Vi being its main customers.
Also read: Germany-based ZF Group may sell up to 5% stake in ZF Commercial Vehicles for Rs 1,423 crore
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