On August 14, 2024, Indus Towers Limited, a prominent participant in the Indian telecom infrastructure market, would begin its share repurchase initiative. The program will end on August 21, 2024, to repurchase up to 56.77 million equity shares at a cost of ₹465 a share.
At 12:55 p.m. on August 13, the share price of Indus Tower was trading lower on the BSE, down 1.25 per cent, at ₹410.70. The market capitalization of the company is ₹1,10,681.06 crore. On July 30, 2024, the price of Indus Tower’s stock reached its 52-week high of ₹453.30.
This repurchase, which has a maximum budget of ₹2,640 Crore, excluding transaction fees, reflects about 2.107 per cent of the company’s total equity shares. The procedure will take the form of a tender offer in compliance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018.
Through technological means, eligible shareholders who owned equity shares on August 9, 2024, the record date, have been notified. The company’s official website can also access the Letter of Offer and Tender Form details.
Samridhi Rodhe, Company Secretary and Compliance Officer of Indus Towers, stated, “This buyback aligns with our ongoing efforts to optimize returns to our shareholders and enhance the company’s earnings per share.”
For the first quarter ending June 30, 2024, Indus Towers reported a 42% increase in consolidated earnings, totalling ₹1,925.9 Crore. As to the company’s most recent regulatory filing, there has been a significant increase from the ₹1,347.9 crore recorded during the same time in the previous year. A slight rise of around 4% was also observed in the consolidated revenue from operations, which increased to ₹7,439.4 crore from ₹7,132.4 crore in the same quarter of the previous year.
Vodafone Group Plc sold 17.98% of its Indus Towers shares through its indirect wholly-owned subsidiaries in the same quarter. Roughly 27 million equity shares, or 1% of the company’s equity share capital, were purchased by Bharti Airtel Ltd. As a result, Bharti Airtel Ltd. owned 48.95 per cent of the corporation as of June 30, 2024, while Vodafone Group held 3.06 per cent. Bharti Airtel Ltd. and Vodafone still promote Indus Towers despite the changes in shareholding.
