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Apr 23, 2024 01:26 PM IST
Indus Towers has received a big boost from Vodafone Idea FPO and the subsequent upgrade by CLSA.
Vodafone Idea FPO, worth ₹18000 crore, the biggest-ever follow-on public offer in India, is having a salutary effect on Indus Towers, whose share price zoomed as much as 4%, a day after the successful conclusion of the offer. Significantly, CLSA also moved quickly to upgrade Indus Towers stock by ascribing it a ‘buy’ rating along with boosting the target price to ₹450 from the earlier ₹335. Indus Towers share price is now trading at ₹363.30, up 13.50 (3.86%) at 12:55 pm IST.
Just a day after the successful conclusion of Vodafone Idea FPO, CLSA has upgraded Indus Towers. (Representational image)(HT Photo) CLSA says that the reason for the upgrade stems from the fact that Indus Towers could be a key beneficiary of the Vodafone Idea FPO. Notably, Vodafone Idea is looking at adding some 48,000 sites for 4G and 5G technology. A Money Control report says CLSA has upgraded Indus Towers’ CY2025 and CY2026 forecasts a it sees the 24,000 additional tenancies boosting the CY26 EBITDA growth to 10 percent on-year.
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The report indicated that Vodafone Idea's dues to Indus Towers are as high as ₹7,000 crore. CLSA also notes that Vodafone Idea’s previous such settlement worth ₹5,700 crore “could be worth an incremental ₹21 per share.”
Vodafone Idea FPO
The FPO has had a very good effect on Vodafone Idea share price too. Today, shares jumped 7.83 per cent to ₹13.98 on the BSE.
This was on the back of the FPO being oversubscribed by as much as 6.99 times the issue size.
Notably, today, the company revealed in a filing that it has approved an offer price of ₹11 per equity share.
Together with ₹5,400 crore collected from anchor investors by selling 490 crore shares prior to the market share, it raised the targeted ₹18,000 crore.
The proceeds from the FPO will go towards the delayed 5G roll-out, boosting its 4G services infrastructure as well as clearing debt.
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