In Short:
ATC Telecom Infrastructure has sold its 2.87% stake in Vodafone Idea for Rs 1,840 crore. The shares were sold at an average price of Rs 12.78 apiece. Citigroup Global Markets Mauritius acquired a 0.98% stake in VIL for Rs 623.88 crore. Vodafone Idea recently raised Rs 18,000 crore through a FPO, with institutional investors subscribing nearly seven times. The funds will help VIL improve its position in the Indian telecom market.
ATC Telecom Infrastructure Sells Stake in Vodafone Idea
ATC Telecom Infrastructure has successfully sold its entire 2.87 per cent stake in telecom operator Vodafone Idea for Rs 1,840 crore through an open market transaction. American Tower Corporation (ATC) Telecom Infrastructure is a major infrastructure service provider for Vodafone Idea.
Details of the Transaction
As per the bulk deal data available on the National Stock Exchange (NSE), ATC Telecom Infrastructure Pvt Ltd offloaded a total of 144 crore shares, representing a 2.87 per cent stake in Vodafone Idea (VIL). The shares were sold at an average price of Rs 12.78 each, amounting to a deal size of Rs 1,840.32 crore. ATC Telecom Infrastructure held a 2.87 per cent stake in VI after converting debentures into equities.
On the other side, Citigroup Global Markets Mauritius acquired over 49.12 crore shares, equivalent to a 0.98 per cent stake in VIL. The shares were purchased at an average price of Rs 12.70, totaling Rs 623.88 crore. However, Citigroup Global Markets Mauritius also divested 98.74 lakh shares of VIL at an average price of Rs 13.47 each, resulting in a deal size of Rs 13.30 crore. The identities of other buyers remain undisclosed.
Market Reaction and Strategic Move
Following these developments, shares of Vodafone Idea witnessed a 0.36 per cent decline, closing at Rs 13.85 apiece on the NSE. This sale comes after Vodafone Idea recently raised Rs 18,000 crore through India’s largest-ever follow-on public offering (FPO). The proceeds from the fundraising will support VIL in enhancing its competitive positioning in the Indian telecom market, where it currently lags behind Reliance Jio and Bharti Airtel by a significant margin.
