Indus Towers has announced that its board of directors will discuss a proposal for buying back its shares on July 30.
In a statement to the stock exchange, the telecom infrastructure company said that the board meeting is set for Tuesday, July 30, and the buyback proposal is on the agenda. The plan is to buy back fully paid-up equity shares worth ₹10 each, following the rules of the Companies Act, 2013, and the Securities and Exchange Board of India’s regulations on share buybacks from 2018.
Due to this proposal, the trading window for Indus Towers shares will be closed for all designated employees and their close family members until August 1, 2024. The last time Indus Towers did a share buyback was in June 2016, when the company was known as Bharti Infratel.
Besides the share buyback, the board will also review and approve the company’s financial results for the first quarter that ended on June 30, 2024.
Indus Towers’ Q1 results are expected to show mixed outcomes. The company is likely to see strong net tenancy additions as Bharti Airtel continues to expand in rural areas. Consequently, Indus Towers’ EBITDA is expected to grow by 2% compared to the previous quarter.
JM Financial predicts that Indus Towers will add 7,100 net tenancies in Q1FY25, down from 7,900 in Q4FY24. However, rental rates are expected to remain unchanged from the previous quarter.
Revenue is expected to increase by 5.1% to ₹7,561 crore, while EBITDA is projected to improve by 2% to ₹4,185 crore. However, the EBITDA margin might decrease by 168 basis points to 55.4%.
On Thursday, Indus Towers shares closed 0.41% lower at ₹424.80 each on the BSE.
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