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.
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.
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.
