Indus Towers Shares Rise Over 5% After Bharti Airtel Buys Equity
Bharti Airtel acquired over 68.7 lakh shares in Indus Towers in five tranches, as per insider trading data on the NSE.
Indus Towers Ltd. share price rose over 5% on Friday as data on the NSE showed promoter Bharti Airtel Ltd. acquired equity between Aug. 25 and Sept. 1 from the open market.
Bharti Airtel acquired over 68.7 lakh shares in the company in five tranches, as per insider trading data on the NSE. This represents 0.26% equity in Indus Towers.
The acquisition price has not been disclosed. The current market value of the shares is Rs 234 crore.
The Sunil Bharti Mittal-led telecom giant owned a 50% stake as of June in Indus Towers, India's largest mobile tower installation company.
In a recent note, analysts at Citi said Indus Towers' valuation is attractive in a regional and local context and believe "growth concerns appear overdone."
They expect strong FCF (Free Cash Flow) generation to support future payouts, despite a temporary delay. Any government relief for Vodafone Idea Ltd. in AGR dues could trigger a positive chain of events, enabling Indus Towers to reinstate dividends, the note said.
Indus Towers has not given any dividends to shareholders since 2022. The company became a subsidiary of Bharti Airtel following a buyback of shares in August 2024.
On Friday, the share price rose as much as 5.3% intraday to Rs 341.3 apiece. The stock has fallen 23% so far this year.
Nine out of the 23 analysts tracking Indus Towers have a 'buy' rating on the stock, seven each recommend a 'hold' and a 'sell', according to Bloomberg data. The average of the 12-month analyst price target of Rs xx implies a potential upside of 18%.
