Vodafone has announced the complete divestment of its remaining stake in Indus Towers Limited. The company sold its remaining 79.2 million shares, representing a 3% stake, for INR 28 billion ($330 million). This move marks the final chapter in Vodafone’s gradual exit from Indus, having already reduced its stake from 28% to 21.5% over recent years.
Upon selling the shares, Vodafone utilized $105 million to settle loans linked to its Indian assets, while investing the remaining $225 million into its mobile unit, Vodafone Idea (Vi). This reinvestment raised Vodafone’s ownership in Vi from 22.56% to 24.39%. Vi can then use the funds to clear outstanding payments to Indus Towers, further resolving its financial obligations.
Vodafone has steadily transitioned its focus over the past years. A notable 18% stake was sold for a substantial $1.8 billion to multiple investors, including SBI Mutual Fund, Kotak Securities, and competitor Bharti Airtel. Currently, Bharti Airtel, owning 49%, stands as Indus Towers’ largest shareholder.
Facing intense competition in India, Vi has been defending its market position against major players like Reliance Jio and Bharti Airtel. Despite securing financing for its operations, Vi continues to be outpaced in terms of subscriber acquisition. The company lags in 4G deployment and hasn’t effectively rolled out 5G infrastructure, contrary to the advancements made by Jio and Airtel in 2022.
Vi is strategically broadening its 4G network to cover 90% of India’s population by mid-2025. Additionally, plans for introducing commercial 5G services by March this year are in motion, beginning in Delhi and Mumbai, and later expanding to major cities in 17 regions. Recent agreements with Ericsson, Nokia, and Samsung aim to enhance 75,000 current 4G sites over three years.
This divestment underscores Vodafone’s shift in market strategy and resource allocation. The company is redirecting its focus towards reinforcing its operations in India amidst a dynamic and competitive environment.
