Indus Towers shares drop 5% amid Vodafone PLC block deal reports; key details

Indus Towers Ltd saw its shares falling over 5 per cent in Wednesday's trade on heavy turnover amid reports Vodafone Group PLC was looking to offload nearly 10 per cent stake for $1.1 billion. The stock fell 5.36 per cent to hit a low of Rs 326.05, only to recover some ground later. At 9.30 am, the scrip was down 3.82 per cent at Rs 331.40 on NSE. Indus Towers saw Rs 1,548.74 crore turnover on NSE and Rs 343 crore turnover on BSE. The block deal data will be out in the evening. 

Vodafone Group PLC was reportedly looking to sell up to 9.94 per cent stake in Indus Towers Ltd via a block deal today. The block deal price range was seen at Rs 310-341, which would have been at 10 per cent discount to the prevailing market price at the upper limit of the price band. Vodafone was seen raising Rs 9,140 crore or $1.1 billion from the stake sale.

Later reports emerged that Vodafone PLC increased the block size in Indus Towers. Vodafone Plc was later looking to sell 18 per cent  stake in Indus Tower via block deal.”

"As per Nuvama Alternative math , if this holds true then the passive flow (MSCI + FTSE) will be close to $200 million (45 milln shares :  3 days impact). Both the Rejigs will be on separate days," Nuvama Insitutional Equities said in a note. 

Vodafone held 21.05 per cent stake in India's largest mobile tower installation company, as per the latest quarterly shareholding patter.

Abhilash Pagaria of Nuvama Institutional Equities said that the stake sale is of significant size and therefore the float adjustment in passive indices should happen in the next few days.