The shares of Indus Towers Limited, a subsidiary of Bharti Airtel, opened 8 percent higher at Rs 154.95 as against its previous close of Rs 143.65 on Monday. Until the afternoon, the stock further gained 6 percent and was trading at Rs 163.
The shares have been gaining after its parent company, Bharti Airtel said that it had raised its direct stake in Indus Towers. It acquired another 23.01 percent stake in the company taking its total shareholding to 47.95 percent.
Adding to this was the recent development in Vodafone Idea (Vi) case as the government decided to convert the company’s accrued interest worth Rs 16,133 crore, on account of deferment of adjusted gross revenue (AGR) and spectrum dues, into equity.
At present, Vodafone Idea owes more than Rs 3,000 crores to American Tower Corp (ATC) and an additional estimated Rs 7,000 crore to Indus Towers. Hence, the news brought hopes back for Indus tower to recover its dues.
Analysts have said the government’s decision to convert Vi’s accrued interest into equity will help the telco get some existing bank debt refinanced in the immediate future, which will help free up cash to pay vendor dues particularly to Indus Towers as well as for immediate capex needs.
Indus Towers Limited, one of the largest telecom tower companies in the world, offers passive infrastructure services to telecom operators and other wireless service providers such as broadband service providers. It has over 1,89,392 towers and 3,39,435 co-locations with a nationwide presence covering all 22 telecom circles.
In Q3FY23, the company’s revenue declined by 2 percent to Rs 6,765 Crore from Rs 6,927.4 Crore Year on Year (YoY) and 15 percent from Rs 7,966.6 Crore Quarter on Quarter (QoQ).
The company reported a net loss of Rs 708.2 Crore in the quarter under review against a net profit of Rs 1,570.8 Crore in Q3FY22. In the previous quarter, their profits stood at Rs 871.8 Crore.
Written by Anoushka Roy
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