One of the largest telecom tower companies’ stock fell up to 5.5% after Foreign Institutional Investors sold a stake in the company via a block deal.
In the second half of Thursday’s session, Indus Towers shares were trading at ₹219 apiece, down 1.24 percent on the exchange. The stock belongs to the large-cap category with a market capitalization of ₹59,060 crore. While Indus Towers shares have gained 29 percent in the last six months and 52 percent in a year.
As per the Moneycontrol report, Indus Towers registered a block deal worth ₹ 5,229 crore with around 24.7 crore shares, representing a 9.2 percent stake in the company, changing hands on February 1.
Earlier, Moneycontrol reported that US private equity firm KKR and Canadian pension fund, Canada Pension Plan Investment Board (CPPIB) was looking to offload its entire 4.85 percent stake in Indus Towers, held through its affiliate Silverview Portfolio Investments, for $323 million.
On the other hand, the Canada Pension Fund was planning to sell a 2.14 percent stake for $142 million.
Indus Towers Limited is engaged in the business of setting up, operating, and maintaining wireless communication towers. The company has a tower market share of 33% and a tenancy market share of 42% which makes it a leader in the telecom tower industry in India.
In recent days, BoFA Securities has revised a ‘buy’ rating on Indus Towers Ltd with a target of Rs 270 per share from Rs 148 per share, with an upside potential of 23 percent.
The company’s revenues have increased by 5 percent year on year from ₹ 6,765 crore in Q3FY23 to ₹7,099 crore in Q3FY24, while net profit has significantly increased from a loss of ₹708 crore to a profit of ₹1,540 crore.
Written by Omkar Chitnis
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