The shares of this leading tower company surged by 5.2 percent to an all-time 52-week high of Rs 447.30 apiece after the company announced the approval of a buyback of its shares.
Share Price Movement:
With a market capitalization of Rs 1,19,102 crores, the shares of Indus Towers Limited surged around 4 percent, trading at Rs 441.75 apiece at 10:15 am on Friday. The shares of this firm generated a multi-bagger return of 145 percent over the past year and 90 percent over the past 6 months.
What Happened:
As per the stock exchange filings published by Indus Towers Limited, the board of directors of the firm will be meeting on July 30, 2024, to consider and approve the proposal for the buyback of its fully paid-up equity shares of Rs 10 each.
The last buyback by the firm was conducted in June 2016 when the company was previously known as Bharti Infratel.
The trading window for Indus Towers shares shall remain closed for all Designated Persons and their immediate relatives until Thursday, August 01, 2024, due to the Indus Towers buyback proposal, as per the filings.
Financials:
The revenues generated by Indus Towers Limited jumped by 0.77 percent from Rs 28,382 crores in FY23 to Rs 28,601 crores in FY24. In the same time frame, the net profits also increased from Rs 2,040 crores to Rs 6,036 crores, demonstrating a tremendous 196 percent increase.
Ratios:
In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 22.31 percent and a return on capital employed (ROCE) of 21.84 percent. It has also reported a debt-to-equity ratio of 0.16 times for the same period.
EPS:
The earnings per share of Indus Towers Limited increased by 196 percent from Rs 7.58 in March 2023 to Rs 22.42 in March 2024.
Recent Acquisitions and Divestment of Stakes:
In 2024, Bharti Airtel bought an extra 1 percent stake in Indus Towers, while Vodafone UK sold an 18 percent share in the company simultaneously.
Shareholding Pattern:
As of June 2024, the firm’s shareholding pattern stood at 52.01 percent of the stakes held by the promoters, 7.85 percent held by the public, 23.15 percent by the foreign institutional investors, and the remaining 16.99 percent held by the domestic institutional investors. For the same period, the domestic institutional investor LIC holds a 2.36 percent stake in Indus Towers Limited.
About the Company:
Incorporated in 2006, Indus Towers Limited is engaged in the business of, inter-alia, setting up, operating, and maintaining wireless communication towers. Its offerings include towers, power, space; smart cities; tower operations centers, and green technology.
Written By Zahal
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