Indus Towers shares rally as board considers buyback next week

On a YTD basis, the shares of India's largest mobile tower installation company have more than doubled and are higher by 150 percent in the past one year.

The board of telecom infra player Indus Towers will consider a proposal to buyback shares next week, sending the shares higher in early trade by 5 percent on July 26.

The proposal - scheduled to be taken up on July 30 - will be the first buyback being considered by Indus Towers in nearly eight years.

“To consider and approve the proposal for buyback of fully paid-up equity shares of Rs. 10/- each of the Company, including matters related/ incidental thereto, (‘Buyback’). in accordance with the applicable provisions under the Companies Act, 2013, the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended, and other applicable laws (if any),” said the company, in an exchange filing.

On a YTD basis, the shares of India's largest mobile tower installation company have more than doubled and are higher by 150 percent in the past one year.

Indus Towers is expecting the capex intensity to remain high in the current financial year as Bharti Airtel aggressively rolls out towers and Vodafone Idea (Vi) expands 4G and 5G services.

Bharti Airtel owns about 48% stake in Indus Towers, and has bought an additional 1% stake in the company via block trades in June.

Vodafone Plc, the Indian telco’s UK-based parent, in June had sold an 18 percent stake in Indus for around Rs 15,300 crore. Voda Idea is expected to roll out over 60,000 tenancies in the next few quarters, a lucrative opportunity for the Indian tower industry.

Indus Towers has improved its execution capabilities in the past few years, helping Bharti Airtel widen its rural footprint.