Shares of telecom infrastructure company Indus Towers gained over 2% to an intra-day high of ₹447.40 on NSE on Wednesday, August 28, following news that it will become a subsidiary of Bharti Airtel. The development comes as Airtel announced a share buyback exercise that will increase its stake in Indus Towers to over 50%.

According to Airtel’s regulatory filing, the company is acquiring 5.67 crore equity shares of Indus Towers, which will bring its total shareholding to more than 50%. As of the end of the June 2024 quarter, Airtel, one of the promoter entities of Indus Towers, held a 48.95% stake. The buyback will boost Airtel’s holding by approximately 2%.

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Airtel’s filing detailed the buyback of up to 56,774,193 equity shares, representing approximately 2.107% of Indus Towers’ paid-up share capital.

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Indus Tower Buyback Details

“This is in reference to the buyback of up to 56,774,193 equity shares (representing ~2.107% of the total number of equity shares in the paid-up share capital) by Indus Towers Limited, a joint venture company in which the company currently holds 48.95% shareholding,” Airtel stated.

The company further informed that, based on communication from Indus Towers dated August 27, 2024, Airtel’s shareholding will rise to approximately 50.005% of Indus Towers’ paid-up share capital, subject to the completion of relevant buyback activities within the stipulated timelines.

As a result, Indus Towers will officially become a subsidiary of Bharti Airtel under the Companies Act, 2013. The announcement, made early on August 28, is expected to keep Airtel’s stock in focus during early trading.

Indus Tower Stock Performance in Last One Year

In terms of stock performance, Indus Towers shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 1% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 82.61%, indicating a strong upward trend.

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Year-to-date, Indus Tower shares have surged by 120.35%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 158.84% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.

Bharti Airtel Stock Performance in Last One Year

Bharti Airtel shares have delivered positive returns across various time frames. Over the last month, the stock has shown a positive return of 3.99%, indicating short-term growth. In the last six months, the performance has been even more impressive, with a substantial increase of 36.48%, showcasing the stock’s resilience and upward momentum.

Year-to-date, Bharti Airtel shares have surged by 52.07%, emphasizing the stock’s positive trajectory in the current calendar year. Looking back over the last twelve months, the stock has demonstrated significant growth, surpassing 77%. These consistent positive returns underscore the stock’s strong performance and appeal to investors.