Vodafone Idea Sells Shares Worth Rs 5,400 Crore to Institutional Investors

Last week, Vodafone Idea successfully secured Rs 5,400 crore by selling shares to institutional investors, with investment firms GQG and Fidelity being the main participants in the anchor book allocation phase of the offering. Additionally, ATC Telecom Infrastructure divested its entire 2.87% stake in Vodafone Idea for Rs 1,840 crore through a transaction on the open market, making it one of the largest infrastructure service providers for Vodafone Idea.

According to data from the National Stock Exchange (NSE), ATC Telecom Infrastructure Pvt Ltd sold a total of 144 crore shares, equivalent to a 2.87% stake in Vodafone Idea, at an average price of Rs 12.78 each, totaling Rs 1,840.32 crore. This move by ATC Telecom Infrastructure came as it recently converted debentures into equities, further reflecting changes in ownership within Vodafone Idea. Citigroup Global Markets Mauritius also played a role in the transactions, acquiring over 49.12 crore shares, representing a 0.98% stake in VIL, at an average price of Rs 12.70, totaling Rs 623.88 crore, and subsequently selling 98.74 lakh shares at an average price of Rs 13.47, valued at Rs 13.30 crore, in a separate deal.

With the successful follow-on public offering (FPO) raising Rs 18,000 crore, Vodafone Idea aims to reinforce its position in the highly competitive Indian telecom market, where it is currently behind Reliance Jio and Bharti Airtel by a significant margin. The recent funding will provide Vodafone Idea with the necessary resources to enhance its competitive standing and potentially bridge the gap with its market rivals.