Indus Towers to become Bharti Airtel subsidiary after share buyback

The board of Indus Towers has approved the buyback of 56.7 million shares. giving Airtel a 50.05 percent

Bharti Airtel is set to hold an over 50 per cent stake in Indus Towers after the tower management firm's board approved the buyback of 56.7 million equity shares, Indus Towers has informed the exchanges. Consequently, Indus Towers Limited will become a subsidiary of Bharti Airtel Limited under the provisions of the Companies Act, 2013, the company said in a late-night filing on August 27.

Currently, Bharti Airtel has a 48.95 per cent stake in Indus Towers, which will now rise to 50.05 per cent.

Indus Towers began the buyback of the shares at Rs 465 each on August 14 for an aggregate amount of Rs 2,639.9 crore. The 56.7 million shares represented approximately 2.1 per cent of the total number of equity shares in the paid-up share capital. While the buyback closing date was August 21, Wednesday was the last date for the completion of the settlement of bids by the BSE.

The stock price of both companies rose after the latest announcement. Indus Towers was trading at Rs 443.8, up 1.34 per cent, while Bharti Airtel gained 2.3 per cent from the previous day to trade at Rs 1,558.

In June, British telecom giant Vodafone PLC sold 484.7 million shares, or a hefty 18 per cent stake, in Indus Towers in block deals, raising Rs 15,300 crore. While the proceeds were to go towards paying the Vodafone group's existing lenders, Indus Towers itself stands to gain less than Rs 4,250 crore, analysts had said.

After the stake sale, Vodafone's holding in Indus Towers reduced to 3.1 per cent, down from 21.5 per cent. Meanwhile, Bharti Airtel had acquired 28.95 million shares, or a 1 per cent stake, in Indus Towers. US-based investment management fund Artisan Partners LP, along with SBI Funds Management and Life Insurance Corporation of India, held 2.69 per cent, 2.59 per cent and 2.13 per cent, respectively.

In the first quarter (April-June) of FY25, Indus Towers reported a 42 per cent increase in consolidated profit, amounting to Rs 1,925.9 crore, up from Rs 1,347.9 crore in Q1 FY24.