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Last Updated : Nov 20, 2020 11:45 AM IST | Source: Moneycontrol.com

Vodafone Idea share price gains 4% after selling stake in Indus Towers for Rs 3,760 crore

Vodafone Group will hold 28.12 percent stake in the merged entity, while the holding of Airtel Group will be about 36.7 percent.

 
 
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Vodafone Idea share price gained over 4 percent intraday on November 20 after the telecom firm sold its 11.15 percent stake in Indus Towers for Rs 3,760 crore.

The merger of Bharti Infratel and Indus Towers to create a mega tower company has been completed, and Vodafone Idea has received Rs 3,760.1 crore cash for its 11.15 percent holding in Indus, a regulatory filing said on November 19.

Vodafone Group will hold 28.12 percent stake in the merged entity, while the holding of Airtel Group will be about 36.7 percent.

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"...the Board has allotted 757,821,804 equity shares of Rs 10 each to the Vodafone group and 87,506,900 equity shares of Rs 10 each to PS Asia Holding Investments (Mauritius) Limited (Providence) aggregating to 28.12 percent and 3.25 percent respectively in the post-issue share capital of the company," Bharti Infratel said in the filing.

It further said the merger of Indus and Infratel "has been completed", and added that Vodafone Idea has received cash consideration of Rs 3,760.1 crore for its 11.15 percent shareholding in Indus.

The stock was trading at Rs 9.65, up Rs 0.38, or 4.10 percent at 11:12 hours. It has touched an intraday high of Rs 9.70 and an intraday low of Rs 9.50.

Telecom operator Vi (Vodafone Idea) is planning to increase its tariffs by 15-20 percent by the end of 2020 or early 2021 in a bid to increase its revenue.

According to sources who spoke to The Economic Times, the company is planning to increase tariffs while telcos wait for the regulator to increase the floor prices. This change may happen as soon as December.
First Published on Nov 20, 2020 11:45 am
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