Global investment firm GQG has added more stake in Vodafone Idea through a large trade. ATC Telecom Infrastructure Pvt., on Friday, sold its entire stake in Vodafone Idea, according to people with knowledge of the matter.
At least about 185 crore shares, or 2.8% of equity, changed hands in 102 bunches, according to data compiled by Bloomberg. The shares were sold at a price of Rs 12.7 apiece, the above mentioned sources said.
In a clean out sale, ATC sold its entire 2.8% holding in the ailing telecom stock in block trades at a combined value of nearly Rs 1,828 crore, the people said.
ATC, in March, converted 14,400 Optionally Convertible Debentures into fully paid-up equity shares for Rs 1,440 crore. Vodafone Idea issued Rs 1,600 crore OCDs to the company in February 2023, after receiving approval from stakeholders and stock exchanges.
Meanwhile, GQG was the single largest anchor in the latest fundraise by Vodafone Idea. The Rajiv Jain-run American investment management fund had bought shares worth Rs 1,348 crore through the anchor round for the follow on public offer.
The telecom player raised Rs 18,000 crore through a follow-on public offer. Shares were listed on the exchanges on Thursday. Apart from GQG, other marquee investors like Fidelity Funds and Redwheel Funds subscribed to the offer through the anchor book. The Aditya Birla Group invested Rs 2,075 crore in this fundraise as well.
Chairman Kumar Mangalam Birla said that his cement-to-telecom conglomerate, along with Vodafone Group plc. have invested nearly Rs 1.7 lakh crore in Vodafone Idea and the Indian telecom industry.
“Before this FPO, in the last five years, out of Rs 30,000 crore raised by the company, more than 75% has come from the two promoter groups,” Birla said.
Shares of Vodafone Idea slumped 8.63% to Rs 12.70, the lowest since April 25. It pared losses to trade 3.24% lower at 13.45 as of 9:51 a.m., as compared to a 0.01% advance in the NSE Nifty 50 index.
The scrip has gained 107.63% in the last 12 months, while on a year-to-date basis, it has declined 15.63%. The total traded volume so far today was 7.5 times its 30-day average. The relative strength index was at 49.99.
Out of 16 analysts tracking the company, one maintains a 'buy' rating, four recommend a 'hold,' and 11 suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 43.3%.
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