Indus Towers Now A Bharti Airtel Subsidiary As Vodafone Group Made Complete Exit

On December 5, 2024, Vodafone Group shareholders collectively divested their entire stake in Indus Towers, leading to the termination of the shareholders' agreement between Bharti Airtel, Vodafone shareholders, and Indus Towers. This as part of a broader strategy to repay domestic debt and support Vodafone Idea's financial obligations.

As a result, Indus Towers, which is India's largest mobile tower installation company, became a subsidiary of Bharti Airtel in August 2024.

This move marks Vodafone Group's complete exit from Indus Towers, following a previous sale of an 18% stake in June 2024. The divestment was conducted through an accelerated book-build offering, with the proceeds aimed at addressing Vodafone's debt obligations.

This divestment is a significant step in Vodafone Group's strategy to streamline its operations and support its Indian joint venture, Vodafone Idea. The proceeds from the sale were used to repay outstanding borrowings and potentially infuse fresh capital into Vodafone Idea.

Following the divestment, Indus Towers became a subsidiary of Bharti Airtel, which held a 50% equity stake in the company as of September 2024. The stock price of Indus Towers surged by 5% in early trade on the day of the announcement.

One of the largest telecom tower companies in the world, Indus Towers provides telecom coverage across all 22 telecom circles in India, with 219,736 towers and 368,588 co-locations as of March 31, 2024.

Indus Towers offers a range of services including tower operations, power solutions, space solutions, smart cities, and next-gen solutions.

Vodafone's $2 Billion Stake Sale in Indus Towers

Vodafone Group has recently increased its stake sale in Indus Towers to nearly 18% for up to $2 billion, up from about 10% earlier. It is to be noted that it was 10% stake Vodafone originally intended to sell. This move reflects Vodafone's strategic positioning in the Indian telecom market. The company has been actively managing its holdings in Indus Towers, a major player in the telecom infrastructure space.

Vodafone currently owns a 21.5% stake in Indus Towers and plans to use the money from this sale to pay off debt, according to a Reuters report last week. In 2022, Vodafone announced its intention to sell its entire stake in the Indian firm.

Indus Towers is a major telecom infrastructure company that provides passive infrastructure services to telecom operators. It owns and manages a vast network of cell towers, which are essential for mobile connectivity across the country.

Currently, the top shareholders in Indus Towers are – Bharti Airtel Limited: 47.95%; Vofone Group PLC: 21.05%, while other institutional investors and mutual funds hold the remaining shares.

Indus Towers follows a shared infrastructure model, where multiple telecom operators (such as Vodafone Idea, Bharti Airtel, and others) share the same tower infrastructure. This approach reduces duplication, optimizes costs, and ensures efficient network coverage.

The stake sale in Indus Towers by Vodafone Group could have several implications for Vodafone Idea (Vi). Vi, being a major shareholder in Indus Towers, may benefit from the increased valuation resulting from the stake sale. This could positively impact Vi's financial position.

If Vi uses the proceeds from the stake sale to reduce its debt burden, it could improve its liquidity and financial stability. Vi relies on Indus Towers' infrastructure for its network coverage. Any changes in Indus Towers' ownership or operations could impact Vi's network quality and reach.

The stake sale reflects Vodafone's strategic focus on its Indian operations. Vi may need to align its strategies accordingly to maintain competitiveness in the telecom market.

Indus Towers - VMC Enabled Fibre Network and Smart Poles Provide Enhanced Connectivity During COVID-19 Times

CCTV feeds powered by the fibre-based network of smart poles is helping VMC identify violations of social distancing norms

Variable Messaging Displays are being used to efficiently and simultaneously display critical information about COVID-19 across multiple locations in the city

About 100% surge in the data consumption on the Wi-Fi network; 40% increase around hospitals

The network of intelligent poles installed by Indus Towers in partnership with Vadodara Municipal Corporation (VMC) in 2018 under Government's Smart City Mission has been playing a vital role in keeping people safe, informed and connected during the ongoing COVID-19 situation. The fibre network and smart poles is helping VMC create awareness about COVID-19 by disseminating important information 24X7 on a real-time basis through the Variable Messaging Displays across the city. The smart poles with integrated Command and Control Centre (ICCC) has also been capturing data from all major applications as well as feed from various cameras installed across the city are continuously monitoring the implementation of COVID-19-related activities and adherence to the restrictions.



During the period of March to May, there has been about 100% surge in the data consumption through the Wi-Fi network. There has also been an increase of 40% in the number of people using Wi-Fi around hospitals indicating the crucial support the network is providing to citizens and healthcare professionals.



A senior official from VMC, as part of the smart city mission said, "In the battle against the novel coronavirus, fibre network and smart poles are working as an important link for efficient dissemination of information and service to the citizens of Vadodara. During the lockdown, Vadodara recorded a 40% hike in the usage of Wi-Fi, especially in residential and specific areas next to the hospitals and VMC offices indicating that the network helped people and healthcare workers stay connected. We have also integrated My Vadodara app with the VMC portal to provide access to a dedicated section on vital information related to COVID-19."

Nishith Dave, Circle CEO, Gujarat, Indus Towers said, "Telecom infrastructure has been playing a crucial role in ensuring people remain connected and have access to internet enabled services. We are proud that our infrastructure and technology delivered on the promise of transforming the lives of citizens in Vadodara by harnessing the power of smart technology, especially during this challenging time. The multiple application of intelligent poles is a testament to our capability and experience to execute such infrastructure projects."

Indus Towers has always enabled connectivity in India, in the face of calamitous natural disasters and adversity. At present, the field employees of Indus Towers are enabling seamless 24x7 connectivity for smooth functioning of the essential services as well as the digital operation that are dependent on the company's infrastructure. The field personnel of Indus Towers have equipped themselves with the necessary safety gear and working round the clock, even in designated hotspot regions. They have ensured continuous functioning of the mobile tower, which is most critical when it comes to enabling seamless connectivity.

About Indus Towers Limited

Indus Towers Limited is an independently managed company offering passive telecom infrastructure to all telecom operators. Indus is headquartered in the National Capital Region. Founded in 2007, Indus Towers Limited has been promoted under a joint venture amongst (i) Bharti Infratel Limited (group company of Bharti Airtel Limited, rendering telecom services in India under the brand name Airtel), (ii) Vodafone India Limited (group company of Vodafone Group-UK) rendering telecom services in India under the brand name Vodafone, since merged with Idea Cellular Limited and (iii) Aditya Birla Telecom Limited (group company of Idea Cellular Limited, now re-named as Vodafone Idea Limited) which created history by collaborating to share telecom towers & infrastructure.

Indus has presence in 15 telecom circles of India and has achieved over 2,41,663 tenancies till date. With the current count of over 1,29,697 towers, Indus has the widest coverage in India and is one of the largest telecom tower companies in the world.

Indus Towers has been actively involved in developing scalable models for smart cities. The company's approach is to enable the integration of the digital infrastructure with the existing infrastructure. Recently, Indus Towers collaborated with Dehradun Smart City Limited (DSCL) as part of its efforts to make Dehradun a smart city.

Indus' vision of "Transforming Lives by Enabling Communication" is setting a new paradigm for a networked economy, on a world leading scale, whereby there is inclusive and impactful growth for all.

For any further information, please visit the website www.industowers.com.