Bharti Airtel gets CCI approval to raise Indus Towers stake to 50.5%

Bharti Airtel has received the go-ahead from the Competition Commission of India (CCI) to increase its stake in Indus Towers to 50.5%, up from its previous holding of 50%. This approval follows the telecom infrastructure company's ongoing ₹2,640-crore share buyback program. The CCI's decision, made on October 22, 2024, allows Bharti Airtel to solidify further its influence in Indus Towers, a key player in India's telecom infrastructure sector.

The share buyback program

The share buyback program, which opened on August 14, 2024, saw Indus Towers repurchase over 56.77 million shares at ₹465 each. The buyback, amounting to approximately 2.107% of the company's total equity shares, was a significant move aimed at enhancing the company's earnings per share and rewarding shareholders. According to Samridhi Rodhe, Indus Towers' Company Secretary, this initiative aligns with the company's broader strategy of optimising returns for its shareholders.

The buyback has allowed eligible shareholders, as of August 9, to sell their shares via a tender offer. The company's official website provided all the necessary details, ensuring a transparent process for those looking to buy shares online or participate in the buyback.

Indus Towers' Q2 performance

Indus Towers recently reported an impressive financial performance for the second quarter of FY25, with a 71.7% year-on-year increase in consolidated net profit, reaching ₹2,224 crore. The company's revenue also rose by 4.7% to ₹7,465 crore, driven by strong demand for network expansion and consistent collection of past dues.

As Bharti Airtel strengthens its stake in Indus Towers, both companies remain positioned to capitalise on future growth opportunities in the telecom sector. With network expansion continuing to drive demand, those looking to buy shares online might find Indus Towers an attractive option in the coming months.

Key takeaways

• Bharti Airtel increases its stake in Indus Towers to 50.5% after a share buyback.
• Indus Towers repurchased over 56.77 million shares at ₹465 per share in August 2024.
• Indus Towers reported a 71.7% year-on-year rise in Q2 net profit, reflecting strong demand and operational success.
• Investors considering telecom stocks can explore opportunities to buy shares online for potential future gains.