ATC Telecom Infrastructure Exits Vodafone Idea with Rs 1,840 Cr Stake Sale

In a significant move within the telecom sector, ATC Telecom Infrastructure Pvt Ltd has offloaded its entire 2.87% stake in Vodafone Idea (VIL) for a whopping Rs 1,840 crore through an open market transaction. This sale marks a pivotal shift for one of the largest infrastructure service providers to Vodafone Idea. The transaction was executed at an average price of Rs 12.78 per share, totaling 144 crore shares, as per the data from the National Stock Exchange (NSE).

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The divestiture comes after ATC Telecom Infrastructure converted debentures into equities, holding a 2.87% stake in VIL prior to the sale. In a parallel development, Citigroup Global Markets Mauritius has stepped up, acquiring over 49.12 crore shares or a 0.98% stake in VIL at an average price of Rs 12.70 per share, amounting to Rs 623.88 crore. However, it also offloaded 98.74 lakh shares at Rs 13.47 each, bringing the deal size to Rs 13.30 crore.

The identity of other buyers in this transaction remains undisclosed. Following these transactions, Vodafone Idea's shares experienced a slight dip of 0.36%, closing at Rs 13.85 on the NSE.

Adding to the financial maneuvers, Vodafone Idea recently announced raising Rs 18,000 crore through India's largest-ever follow-on public offering (FPO), which saw nearly sevenfold subscription driven by institutional investors' interest. The first phase saw VIL selling shares worth Rs 5,400 crore to institutional investors, with GQG and Fidelity securing the majority during the anchor book allocation.

This fundraising effort is set to bolster Vodafone Idea's position in the fiercely competitive Indian telecom market, currently dominated by Reliance Jio and Bharti Airtel. With this new capital infusion, VIL aims to enhance its service offerings and network capabilities to better compete in this dynamic industry landscape.