Indus Towers surges 10% on heavy volumes, hits 52-week high

Indus Towers is the largest tower company globally, outside of China
Shares of Indus Towers (formerly Bharti Infratel) jumped 10 per cent to hit a 52-week high of Rs 264.70 on the BSE in Tuesday's intra-day trade on the back of heavy volumes. The stock surpassed its previous high of Rs 256.80 touched on January 10, 2020.

The trading volumes on the counter jumped over three-fold as a combined 10 million equity shares changed hand on the NSE and BSE till 01:02 pm. At the same time, the S&P BSE Sensex was up 0.18 per cent at 48,261.

The merger between erstwhile Bharti Infratel and Indus Towers was completed on November 19, 2020. On December Bharti Airtel’s wholly-owned subsidiary Nettle Infrastructure Investments bought an additional 133 million shares, or 4.94 per cent additional stake, in Bharti Infratel for Rs 2,882 crore via block deals. With this acquisition by Nettle, the aggregate shareholding of Bharti (along with subsidiaries) has increased to 41.66 per cent in Infratel against 36.73 per cent earlier. Vodafone Group Plc owns 28.12 per cent stake while rest of the shares are held by the public.

Indus Towers has established a strong market position in the industry with 1.72 lakh towers over 3.14 lakh co-locations as of September 30, 202. It is well spread in all 22 circles. The entity has become India's largest telecom tower company with over one-third of the industry's telecom towers. It is also the largest tower company globally, outside China.

During the July-September quarter (Q2FY21), the company witnessed the highest net tower additions in the last eight years and the highest net collocation additions in the last three years.

This is testament to the demand potential for telecom services and therefore telecom infrastructure in the country. Also with major regulatory uncertainties behind, the management expects operators to focus on their networks both in expanding the reach and coverage of 4G and introduction of newer technologies in the future.

A strong balance sheet along with being industry leaders, we remain well poised to be the beneficiaries of data-led growth in the sector, management said while announcing Q2 results on October 22.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel