Indus Towers Shares Rise On Board Meeting Announcement To Consider Dividend, Bonus, Buyback

Indus Towers Ltd. shares climbed nearly 4 per cent in early trade on Monday after the company announced a key board meeting scheduled for April 30 to discuss measures aimed at boosting shareholder returns.

In a filing with the National Stock Exchange (NSE) and BSE on Sunday evening, Indus Towers said its Board would consider options including a share buyback, a bonus issue via shares or debentures, a dividend payout, or a combination of these strategies. The move signals a focus on improving returns to investors amid strengthened cash flows.

Following the update, the stock opened at Rs 409.05 on the BSE, marking a gain of over 3 per cent from Friday’s close of Rs 396.55. It touched intraday highs of Rs 410.20 on the NSE and Rs 409.40 on the BSE during the morning session.

Indus Towers shares closed at Rs 397 on Friday, down 2.3 per cent for the day. Despite that dip, the stock has risen nearly 20 per cent over the past month and gained 15 per cent since the start of the year.

Indus Tower's share price was trading in the green, up 2.18 per cent, at Rs 405.20, on April 28, at 11:51 am, on BSE.

The company also announced that the trading window for insiders would remain closed until May 2, in line with regulatory requirements.

If a bonus issue is approved, it would mark the first time Indus Towers has issued a bonus as a public company. The last share buyback took place in 2024, its first since 2016, but the stock has yet to reclaim the buyback price of Rs 465, peaking at Rs 460 over the past year.

Indus Towers halted dividend payments in 2022 due to unpaid dues from Vodafone Idea Ltd., a key client. 

In the December quarter, Indus Towers generated Rs 2,700 crore in cash flow. 

At the end of March, over four lakh small shareholders, those holding shares worth up to Rs 2 lakh, owned a 2.82 per cent stake in the company. Mutual funds collectively had more than 13 per cent.