Indus Towers Ltd., a leading tower infrastructure provider, has announced that its Board of Directors will convene on Wednesday, April 30. According to an exchange filing made on Sunday evening, April 27, the board will deliberate on multiple options to enhance shareholder returns. These include the possibility of a share buyback, the issuance of bonus shares or debentures, a dividend declaration, or a combination of these measures.
At 1:38 PM on April 27, shares of Indus Towers were trading higher by 2.87%, indicating positive investor sentiment ahead of the upcoming board decision.
If a bonus issue is announced, it would mark the first instance of Indus Towers executing such an initiative since becoming a publicly listed company. The move would represent a significant milestone in the company’s history, broadening its capital base and rewarding long-term shareholders.
Read More: When Did BSE Issue Bonus Shares for the First Time?
Indus Towers had previously conducted a share buyback in 2024, its first since 2016. However, the stock continues to trade below the buyback price of ₹465 per share, having achieved a 52-week high of ₹460. Despite this, the company’s strategic moves to return value to shareholders remain a focus of market discussions.
The suspension of dividend payouts since 2022 was primarily due to the delayed payments from Vodafone Idea Ltd., one of Indus Towers’ largest customers. This situation had constrained the company’s cash flow, affecting its ability to distribute dividends. Following the resumption of payments by Vodafone Idea, there has been renewed optimism regarding the company’s capacity to offer dividends.
The developments are particularly noteworthy for Indus Towers’ small shareholders. As per the March quarter data, the company had over 4 lakh small shareholders, each holding an authorised share capital of up to ₹2 lakh. Collectively, these shareholders commanded a 2.82% stake in the company. In comparison, mutual funds held a more substantial share of over 13%.
The board’s decision on April 30 will be closely watched, especially by the small investors who stand to benefit directly from any bonus, buyback, or dividend payout.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 28, 2025, 3:29 PM IST
Team Angel One
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