Bharti Airtel Gets CCI Approval to Boost Stake in Indus Towers to 50.5% After ₹2,640 Crore Share Buyback

Bharti Airtel has received approval from the Competition Commission of India (CCI) to increase its stake in Indus Towers, one of India’s largest telecom infrastructure providers. This follows Indus Towers’ ongoing share buyback scheme.

Share Buyback Scheme Details

Indus Towers initiated a ₹2,640-crore buyback of over 5.67 crore shares at ₹465 each, representing 2.107% of its total paid-up share capital. The buyback began on August 14, 2024.

Bharti Airtel’s Stake to Exceed 50%

After the completion of this buyback, Bharti Airtel’s ownership in Indus Towers will rise to 50.005%, surpassing the 50% mark. Currently, Airtel holds a 50% stake in the company. With this increase, Airtel will gain majority control of the telecom infrastructure firm.

CCI Also Clears CVC Capital Partners’ Acquisition

In a separate deal, the CCI has approved Luxembourg-based CVC Capital Partners’ plan to acquire a significant stake in Aavas Financiers, a housing finance company. The acquisition involves purchasing 26.47% of Aavas’ shares from existing promoters, such as Lake District Holdings and Partners Group.

Mandatory Open Offer Triggered

As required by Sebi’s Substantial Acquisition of Shares and Takeovers (SAST) rules, CVC Capital Partners must make a mandatory public open offer since the transaction surpasses the 25% shareholding threshold.

Impact on Market Competition

Both these deals required CCI approval, as they involve significant stake acquisitions. The CCI ensures that such transactions do not harm fair competition in the market.

These moves represent strategic expansions for both Bharti Airtel and CVC Capital Partners, giving them stronger control in their respective sectors.