Vodafone Indus Towers

The group is reportedly looking to raise long-term debt for ailing telco Vodafone Idea (Vi) and use preferential share allotment as the route

Stake issuance coupled with potential capital infusion by promoters should help Vi clear pending dues and invest in 5G; Indus Towers' receivables set to reduce

Shares of Indus Towers, too, surged 15 per cent to Rs 164.80 on the BSE

A significant part of the payment for Oct-Dec has been cleared by Vi, but instalment for January remains unpaid

The loss in the books was a result of adoption of stringent accounting practices by the Company due to continued shortfall in collections from one of the major customers, the company said.

Firm reports loss of Rs 708 crore in Q3; in Q2 it had recorded a profit of Rs 872 crore

Analysts at BNP Paribas believe an improvement in long-term revenue visibility from Vodafone Idea can result in further increase in earnings estimates as well as valuation multiple of Indus Towers

The lenders have, however, sought clarity from the telco on the Government's potential shareholding and its plans to infuse capital in Vi

The promoters are willing to infuse Rs 2,000-3,000 crore but it is too less to revive the company

Tower installation firm had said conversion of interest into equity stake for the government can be decided only after telecom company's stock price improves

Any equity infusion cannot be below par value, says Indus Towers in its Q2 report

Indus Towers posted a net profit of Rs 872 crore in the second quarter of the fiscal year (FY2023) on a revenue of Rs 7,967 crore

This follows Indus Towers's warning letter to Vi to pay up its accumulated dues or face disconnection from November.

Vodafone Idea's (Vi) total tower dues exceed Rs 10,000 crore. Out of this, Rs 7,000 crore is owed to Indus Towers alone

Vi owes Rs 1,000 cr to Ericsson, Rs 3,000 cr to Nokia, Rs 7,000 cr to Indus Towers, and Rs 2,000 cr to American Tower Company (ATC)

Bharti Airtel along with its wholly-owned subsidiary has acquired about 4.7 per cent stake in Indus Towers from Euro Pacific Securities, an affiliate of Vodafone Group, a stock exchange filing said on Tuesday. The shares were acquired at Rs 187.88 a piece, it said. "...We wish to submit that the company, along with its wholly-owned subsidiary, Nettle Infrastructure Investments Limited, has acquired 127,105,179 equity shares (about 4.7 per cent) of Indus Towers at Rs 187.88 per share from Euro Pacific Securities Ltd., an affiliate of Vodafone Group Plc," Airtel said in a BSE filing. Last week, Bharti Airtel had said it will acquire 4.7 per cent stake in Indus Towers from Vodafone Group for about Rs 2,388 crore. Indus Towers, formerly Bharti Infratel, provides passive telecom infrastructure. It owns, deploys and manages telecom towers and communication structures for various mobile phone service operators. The company's portfolio of over 1,84,748 telecom towers makes it one of the .

The stock has gained 6 per cent in the last four trading sessions when compared with a 0.4 per cent gain on the benchmark.

Telecom company Bharti Airtel will acquire a 4.7 per cent stake in Indus Towers from Vodafone Group for about Rs 2,388 crore, according to a company filing

Closing Bell: Hindalco (up over 7 per cent), Tata Steel, Power Grid, JSW Steel, Coal India, BPCL, Titan Company, RIL, and Indian Oil Corporation were the biggest large-cap gainers on the bourses today

The agreement in on the principal condition that the amount paid shall be inducted by Vodafone as fresh equity in VIL and simultaneously remitted to Indus Towers to clear VIL's outstanding dues.