OCTOBER 20248INDIAN RAILWAYS ON TRACK TO COMPLETE 100 CARGO TERMINALSATC TELECOM SELLS ITS ENTIRE STAKE IN VODAFONE-IDEAThe Indian Railways is on track to surpass its goal of establishing 100 Gati Shakti Cargo Terminals (GCT) ahead of schedule. As per officials familiar with the progress, 60 terminals operating under the public-private partnership (PPP) model are already up and running, with the remaining 40 expected to be operational by the end of the current fiscal year.ATC Telecom Infrastructure made a significant move in the telecom sector by selling its entire 2.87 percent stake in Vodafone Idea for Rs 1,840 crore through an open market transaction. As one of the largest infrastructure service providers for Vodafone Idea, this sale marks a notable development in the telecom landscape.These terminals play a crucial role in handling bulk cargo for businesses interconnected with the Indian Railways. They focus on non-passenger commercial activities such as freight transportation and are established under a new policy aimed at leveraging unused railway land for monetization.The government had initially aimed to establish 100 Gati Shakti Terminals within a five-year period, as outlined in the Union Budget 2022-23.These initiatives align with efforts to promote the containerization of domestic cargo, facilitating its transportation by rail. An investment of Rs 5,374 crore has already been allocated for the operational Gati Shakti cargo terminals.In response to inquiries about freight priorities for the Indian Railways, the official emphasized the importance of prioritizing heavy goods like coal and cement over lighter goods such as electronics and clothing. The focus is on increasing containerization for lighter goods to enhance operational efficiency and speed up handling processes.Currently, heavy goods are transported via dedicated freight trains, while lighter goods are carried in smaller quantities alongside passengers. Transitioning to containerization will enable the railways to transport larger volumes of lighter goods more efficiently, leading to better-planned services. The transaction involved the sale of 144 crore shares of Vodafone Idea by ATC Telecom Infrastructure Pvt Ltd at an average price of Rs 12.78 per share, resulting in a total deal size of Rs 1,840.32 crore. ATC Telecom Infrastructure previously held a 2.87 percent stake in Vodafone Idea, which it converted from debentures into equities.Additionally, Citigroup Global Markets Mauritius acquired over 49.12 crore shares of Vodafone Idea, representing a 0.98 percent stake, at an average price of Rs 12.70 per share, amounting to a deal value of Rs 623.88 crore. However, Citigroup Global Markets Mauritius also sold 98.74 lakh shares of Vodafone Idea at an average price of Rs 13.47 per share, resulting in a deal size of Rs 13.30 crore.While the identity of other buyers of the shares remains undisclosed, these transactions underscore the dynamic nature of the telecom sector in India. Vodafone Idea's shares closed at Rs 13.85 apiece on the National Stock Exchange (NSE), experiencing a slight decline of 0.36 percent.Earlier, Vodafone Idea successfully raised Rs 18,000 crore through a follow-on public offering (FPO), marking India's largest-ever FPO. The strong subscription to the FPO, which was nearly seven times oversubscribed, demonstrates institutional investor confidence in the telecom operator amidst its debt-laden situation. TOP STORIES
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