Indus Towers to Acquire 16,100 Telecom Towers from Bharti Airtel and Bharti Hexacom

Indus Towers Limited has announced its decision to acquire passive telecom infrastructure assets, including 16,100 telecom towers, from Bharti Airtel Limited and Bharti Hexacom Limited. This acquisition, conducted via a slump sale, aligns with the company’s strategic focus on market expansion and operational synergy.

As of 9:48 am on February 7, 2025, the share price of Indus Towers was trading over 2.5% higher.

Strengthening Market Position

With a pan-India presence of 2,34,643 towers and 3,86,819 co-locations as of December 31, 2024, Indus Towers has been a significant player in the telecom infrastructure sector. The acquisition is expected to further bolster its asset base, allowing for enhanced coverage and service capabilities.

The closing sharing factor for the company stands at 1.65, and the additional infrastructure is anticipated to improve this metric, leading to increased operational efficiency.

Transaction Details and Financial Considerations

This transaction is classified as a related-party transaction since Bharti Airtel is the promoter and holding company of Indus Towers, while Bharti Hexacom is a fellow subsidiary. However, the acquisition is conducted at arm’s length, based on an independent valuation report, and has received approval from the Audit & Risk Management Committee and the Board of Directors.

The total cost of the acquisition is capped at ₹33,087 million, subject to closing adjustments agreed upon by the parties. The deal will be financed through borrowings, and completion is expected on or before March 31, 2025, subject to statutory and regulatory approvals.

Strategic Benefits and Growth Outlook

The acquisition aligns with Indus Towers’ growth strategy, enhancing its footprint in the telecom infrastructure segment. By increasing the number of towers under its management, the company aims to improve service offerings, optimise resource allocation, and drive revenue growth through increased sharing opportunities.

Furthermore, the acquisition positions Indus Towers favourably amid the rising demand for robust telecom infrastructure, as network providers expand their 4G and 5G capabilities across the country.

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