Block deal: Vodafone Group PLC's stake sale in Indus Towers Ltd could bring in about $110 million in passive inflows to the latter's counter over the next few sessions, Nuvama Institutional Equities said in its latest note.
Vodafone Group PLC is 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 is seen at Rs 310-341, which would be at up to 10 per cent discount to the prevailing market price of the stock. At the upper end of the price band, Vodafone could raise approximately Rs 9,140 crore, or $1.1 billion.
Vodafone held 21.05 per cent stake in India's largest mobile tower installation company, as per the March quarter 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.
In the case of MSCI, he sees passive inflows of around $70 million. In the case of FTSE indices, he said: "The inflow should be $36 million; 8.6 million shares, which is a half-day impact."
As per reports, the Indus Towers block deal could be the second-largest in India following the ITC transaction earlier this year. To recall, British American Tobacco Plc (BAT) had offloaded 3.5 per cent stake in the cigarette maker in March through an open market transaction for Rs 17,485 crore.