The shares of Telecomm services company specializing in providing passive infrastructure services for telecom operators jumped upto 3 percent following the acquisition of 16,100 telecom towers from Bharti Airtel and Bharti Hexacom for Rs. 3,308.7 crore.
Price action
With a market capitalization of Rs. 95,926 crores on Friday, the shares of Indus Towers Limited rose upto 3.4 percent making a high of Rs. 367.95 per share compared to its previous closing price of Rs. 355.95 per share.
What Happened
Indus Towers Limited engaged in providing passive infrastructure services for telecom operators has approved the acquisition of telecom towers and related infrastructure assets which include Macro Sites, Ultra Lean Sites (ULS), and Cell on Wheels (COW) from Bharti Airtel and Bharti Hexacom through a slump sale.
Through the proposed transaction, the Company plans to acquire an aggregate of approx. 16,100 Telecom Towers and the cost of acquisition will be up to a maximum of Rs. 3,308.7 crores which will further enhance the Company’s asset portfolio.
Rationale for Acqusition
This is the Company’s strategic priority of increasing its market share, the acquisition is expected to help the company add more towers to its portfolio, thereby improving its market share. The acquisition is anticipated to play an important role in the Company’s growth plans due to its location and colocation status, which provide, inter-alia, sharing opportunities that could drive revenue growth.
About the Company
Indus Towers Limited is a leading provider of telecom infrastructure services in India, specializing in passive infrastructure such as telecom towers. The company operates a vast network of towers across the country, enabling telecom operators to deliver connectivity services. Indus Towers focuses on enhancing market share and fostering growth through strategic acquisitions and operational synergies.
Financials
The company’s revenue rose by 6.02 percent from Rs. 7,197.9 crore to Rs. 7,631.2 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs.1,540.5 crores to Rs. 4,003.2 crores in Q3FY24-25.
Written by Sridhar J
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