Vodafone’s Stake Sale Details

The company stated that the sale of its 7.92 crore shares in Indus Towers will be conducted through an accelerated book-build offering. Indus Towers confirmed the development in an official exchange filing:

"The pledge on 3.003% shares held by Vodafone Promoters has been released to facilitate the sale of such shares and utilise the proceeds as per the terms of the security package."

According to Vodafone Group, the proceeds from this stake sale will primarily be used to repay $101 million of existing loans, secured by its Indian assets.

Vodafone Idea's Financial Challenges

Interest Obligation & Government Equity

VIL has cleared approximately ₹16,000 crore in interest obligations related to deferred payments. Additionally, it has offered equity to the Indian government, which now holds a 23% stake in VIL.

AGR Dues & Relief Request

VIL has requested relief from the government on its ₹70,000 crore adjusted gross revenue (AGR) dues. The request follows the Supreme Court's rejection of its curative petition seeking corrections to the calculation of dues and penalties.

Overall Liabilities

As of June 30, 2024, VIL’s total payment obligations stood at a staggering ₹2,09,520 crore, comprising:

• ₹1,39,200 crore in deferred spectrum payment obligations.
• ₹70,320 crore in AGR liabilities.

Previous Stake Sales

This is not Vodafone’s first stake sale in Indus Towers. Earlier in June, the company sold an 18% stake in Indus Towers, generating $1.82 billion.

Conclusion

Vodafone Group’s decision to sell its remaining stake in Indus Towers underscores the company's urgent need to stabilize its financial position. The proceeds from the sale are expected to provide temporary relief, helping the company meet its immediate obligations. However, the broader financial challenges faced by Vodafone Idea continue to loom large, necessitating strategic decisions and potential governmental support in the future.