Indus Towers’ share price surged over 8% to Rs 223 intraday on Friday after UK’s Vodafone Group Plc raised about Rs 1,443 crore by selling a 2.4% stake in Indus Towers through a block deal to unnamed investors on Thursday. Vodafone sold 63.6 million shares owned by Euro Pacific Securities at Rs 226.84 per share, bulk deal data released on the NSE on Thursday night. Vodafone Group’s stake in the telecom tower company was reduced to 25.7% after the block deal.

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British Telecom which owned a 28.1% stake in Indus on Wednesday announced that it would sell a 2.4% stake on Thursday through a block deal. It is also in discussions with Bharti Airtel to sell another 4.7%, according to a PTI report. The stake is estimated to be valued at over Rs 3,300 crore, and the proceeds will be infused into the Indian unit Vodafone Idea, said the report.

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A foreign research firm Jefferies maintained the ‘buy’ call of the stock and cut the target price to Rs 295 from Rs 320 per share. Vodafone’s stake sale may be a near-term overhang while favouring a risk-reward after a steep correction. From the next renewal, cycle there will be no rental escalation.

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The UK-based company and India’s Aditya Birla Group wish to subscribe to an issue of equity shares by Vi in their capacity as co-promoters.

On Thursday, shares of Indus Towers crashed more than 18% to Rs 205.75 on the BSE while the Vi shares plunged 10% to close at Rs 9.64. Airtel shares closed 4.8% lower at Rs 670.06.

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Since, its highest in September 2021, Indus Tower’s stock has dropped 35% and underperformed Nifty by 26%.

Indus Towers, earlier known as Bharti Infratel Limited, provides passive telecom infrastructure. The firm owns, manages and operates telecom communication structures or various mobile operators. It is one of the largest tower infrastructure providers in India with a network of more than 1,84,748 telecom towers and a presence in all 22 telecom circles Indus Towers provides services to all wireless telecommunication network operators in India.

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Indus Towers Ltd (INDUSTOWER) shares closed 4.44% or 9.15 points higher at Rs 215.15 on Friday.