Indus Towers shares gain after promoter Bharti Airtel gets nod to increase stake

Shares of tower infrastructure provider Indus Towers gained over 3% on Tuesday, November 4, after its promoter, Bharti Airtel approved increasing stake in the company.

In an exchange filing on Monday, alongside its September quarter results, Bharti Airtel announced that a special committee of directors, authorized by the board, has granted an enabling approval to acquire up to 5% additional stake in Indus Towers, over a period of time.

Bharti Airtel could increase its stake in Indus Towers in one or more tranches.

"Given its strategic importance, it is prudent for the parent company, Bharti Airtel, to continuously evaluate opportunities of consolidating its stake in Indus Towers, while maintaining its cash flow requirements for business capital expenditures and dividend payments," Bharti Airtel said in its statement.

The company went on to add that any acquisition of this stake, if and when it happens, will be subject to market conditions, including liquidity and price considerations, and compliance with laws.

At the end of the September quarter, Bharti Airtel had a 51.03% stake in Indus Towers.

Shares of Indus Towers are trading 2.6% higher on Tuesday at ₹392.8.

The stock had surged over 5% in trade on Monday after the Supreme Court clarified on the AGR dues plea of Vodafone Idea, stating that the government is free to consider relief not just on the additional AGR dues, but also on the overall consideration. Analysts believe that any potential relief to Vodafone Idea will be a major catalyst for Indus Towers, as it will enable the company to resume dividend payout to its shareholders.