A man uses an umbrella as he walks past a Vodafone mobile phone store in Liverpool, Britain, October 8, 2024.
| Photo Credit: Reuters

U.K.-based Vodafone Group has cleared dues of around ₹11,650 crore or about 109 million pound that it raised against shares of Vodafone Idea, according to a regulatory filing.

Vodafone Group had pledged almost the entire stake in VIL to raise the debt.

The pledge was created in favour of HSBC Corporate Trustee Company (U.K.) for the debt raised by Mauritius and India-based entities of Vodafone Group.

“On 27 December 2024, HSBC Corporate Trustee Company (U.K.) Limited acting as the security trustee for the lenders has released the pledges pursuant to repayment of the outstanding dues owed to the lenders by the Vodafone Promoter Shareholders.

“Consequently, the indirect encumbrance on 15,720,826,860 equity shares of the target company held by the Vodafone Promoter Shareholders representing 22.56% of the equity share capital of the target company on a fully diluted basis has been released,” the filing said.

“Consequently, the indirect encumbrance on 15,720,826,860 equity shares of the target company held by the Vodafone Promoter Shareholders representing 22.56% of the equity share capital of the target company on a fully diluted basis has been released,” the filing said.

The shares are valued at around ₹11,649 crore as per the closing price of ₹7.41 apiece of Vodafone Idea stock on Friday.

Vodafone Group holds a 22.56% stake, while the Aditya Birla Group holds 14.76%. The government has a 23.15% stake as of September 30, 2024.

A man walks across the LED display board showing the logo of Vodafone-Idea. File Photo
| Photo Credit: REUTERS

Vodafone Group is looking to sell its entire $2.3 billion stake in Indus Towers through stock market block deals next week, two sources with direct knowledge said, as part of the British firm’s effort to repay debt.

Vodafone owns 21.5% of mobile-tower operator Indus via various group entities. As of Friday’s closing stock price in Mumbai, the investment is worth $2.3 billion.

The final size of the stake sale is yet to be decided and could be lower than 21.5% if demand, which is still being assessed, is insufficient, said the sources, who declined to be named as the discussions were private.

Shares of Vodafone Idea extended gains, rising as much as 4.8% after the Reuters report, while Indus Towers pared gains and closed up 0.3%.

Vodafone India and its British parent did not respond to requests for comment. Indus Towers declined to comment.

Vodafone has hired Bank of America, Morgan Stanley and BNP Paribas to manage the stake sale in stock markets, the sources said.

Bank of America declined to comment while the others did not respond to Reuters requests for comment.

Vodafone in 2022 announced it would sell all of its then-28% stake, but has managed to sell only a small portion so far. The sources said the talks with rival telecom firms for a stake sale had not materialised.

Vodafone plans to repay part of its $42.17 billion net debt using proceeds from the Indus stake sale, the sources said.

Indus, which says it is one of the world’s biggest tower companies, also counts second biggest telecom firm, Bharti Airtel, as a shareholder. It has nearly 220,000 towers, with services also including providing power, space and green technology for tower equipment.

Private equity giant KKR and Canadian fund CPPIB were also investors in Indus, but sold their entire stakes in February.

Block deals, where investors sell shares in stock markets, have become increasingly popular as the market has surged to record highs.

In March, British American Tobacco sold its entire $2 billion stake in tobacco firm ITC.

For the March 2024 quarter, Indus’ net profit rose 20% to $221 million, while its revenue stayed flat at $860 million, according to regulatory filings. ($1 = 0.7873 pounds)