Bharti Airtel Secures CCI Approval To Boost Stake In Indus Towers

A multinational Indian provider of telecommunications services, Bharti Airtel Limited is headquartered in New Delhi. It has operations in 18 South Asian, African, and Channel Island nations. At the moment, Airtel offers 4G, 5G, and LTE Advanced services all over India.

The CCI approved the increase in Bharti Airtel’s ownership of Indus Towers

On October 22, after the telecom infrastructure company repurchased its shares, the Competition Commission of India (CCI) approved Bharti Airtel’s plan to increase its ownership of Indus Towers. One supplier of passive telecom infrastructure is Indus Towers. For a number of mobile operators, it installs, owns, and maintains passive telecom infrastructure.

What CCI say

“In response to Indus Towers’ share buyback, the Commission authorizes an increase in the percentage shareholding of Bharti Airtel Ltd (Bharti Airtel) in Indus Towers Ltd (Indus Towers) to 50.005%,” the CCI said in a statement.

In August, Bharti Airtel announced

In August, Bharti Airtel announced that, after the telecom infrastructure company’s ongoing Rs 2,640-crore share buyback program concluded, it would purchase a greater than 50% stake in Indus Towers.

Indus Towers share buyback process

On August 14, telecom infrastructure giant Indus Towers started repurchasing more than 5.67 crore shares at a price of Rs. 465 each, which amounts to roughly 2.107% of the total number of equity shares in the company’s paid-up share capital. According to exchange data, one of Indus Towers’ promoters, Bharti Airtel, currently owns 50% of the business.

Financial Q2 for Indus Towers

The consolidated net profit of Indus Towers for the September 2024 quarter was Rs. 2,224 crore, up 71.7% year over year. In its earnings release, the company reported that thanks to collections against past-due accounts, it had a write-back of Rs. 1,077 crore in Q2 FY25 for doubtful receivables.

Bharti Airtel Ltd.’s stock is slightly lower

The stock of Bharti Airtel Ltd. is currently trading at Rs. 1,691.75 per share, having peaked at Rs. 1,701.35 per share in the first half. With a 50% stake in Indus Towers, the stock is showing signs of a positive upward trend.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.