Vodafone Idea FPO powers Indus Towers, share price zooms 4% after CLSA upgrade - Hindustan Times
close_game
close_game

Vodafone Idea FPO powers Indus Towers, share price zooms 4% after CLSA upgrade

Apr 23, 2024 01:32 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)
Just a day after the successful conclusion of Vodafone Idea FPO, CLSA has upgraded Indus Towers. (Representational image)(HT Photo)

Read More: M&M Finance share price falls over 7% as company delays Q4 results

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.

Get ready to catch the final stages of the World Cup only on Crickit. Anytime, Anywhere. Explore now!

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.”

Read More: RIL Q4 results: Brokerages make big moves on stock but should you buy?

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.

Read More: Tejas Networks shares soar more than 15%, hit new all-time high. Here's why

The proceeds from the FPO will go towards the delayed 5G roll-out, boosting its 4G services infrastructure as well as clearing debt.

Elevate your career with VIT’s MBA programme that has been designed by its acclaimed faculty & stands out as a beacon for working professionals. Explore now!

See more

Get latest updates on Petrol Price along with Gold Rate , Today Weather and Budget 2024 at Hindustan Times.

SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Monday, June 24, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On