Indus Towers to raise Rs 2,000 crore via NCDs after weak Q2 result

Indus Towers Limited will raise upto Rs 2,000 crore via non-convertible debentures (NCDs), the company announced today. A committee of directors will finalise terms and conditions 0f the NCDs which will be issued on a private placement basis.

The fund raise was approved by the company's board of directors following the second quarter FY 2023 result which saw 44 per cent year on year drop in net profit to Rs 872 crore. 

Revenue for the period grew 16 per cent on a year on year basis to Rs 7,967 crore but profit declined due to challenges in the recovery of dues from Vodafone Idea.

N Kumar, chairman and independent director, Indus Towers Limited said: “We have delivered a strong operational performance during the quarter, underpinned by good demand for products across our portfolio. Our financial performance continues to be impacted by the collection challenges we face from one of our customers. Launch of 5G services by two major operators within three months of the spectrum auction underlines the strong role of infrastructure players in providing 5G-ready sites at speed. At Indus Towers, we stay excited and prepared to capitalise on the 5G opportunity."