CCI Approves Bharti Airtel’s Stake Increase In Indus Towers Post Share Buyback

The Competition Commission of India (CCI) on 22 October, approved telecom giant Bharti Airtel's proposal to increase its stake in Indus Towers following a share buyback by the telecom infrastructure company. "The Commission approves an increase in the percentage shareholding of Bharti Airtel  (Bharti Airtel) in Indus Towers  (Indus Towers) to 50.005 per cent pursuant to the buyback of shares by Indus Towers," the CCI stated in an official release.

In August, Bharti Airtel announced it would hold more than 50 per cent of Indus Towers after the completion of the telecom infrastructure firm’s Rs 2,640-crore share buyback scheme. According to exchange data, Bharti Airtel, a promoter of the company, currently holds a 50 per cent stake. With the regulatory nod, this stake has increased to 50.5 per cent.

Indus Towers commenced its share buyback program on 14 August, aiming to buy back over 5.67 crore shares at Rs 465 per share, representing approximately 2.107 per cent of the company's total equity share capital. Indus Towers is a key passive telecom infrastructure provider that owns, deploys, and manages infrastructure for various mobile operators.

The buyback initiative, scheduled to close on 21 August 2024, involves up to 56.77 million equity shares, with a maximum expenditure of Rs 2,640 crore, excluding transaction costs. This tender offer was in accordance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, and eligible shareholders as of the 9 August record date were notified electronically. Detailed information about the Letter of Offer and the Tender Form is also available on the company’s official website.

Samridhi Rodhe, Indus Towers' Company Secretary and Compliance Officer, said, “This buyback aligns with our ongoing efforts to optimise returns to our shareholders and enhance the company’s earnings per share."

In the June quarter of FY25, Vodafone Group Plc sold 17.98 per cent of its shareholding in Indus Towers through its indirect wholly-owned subsidiaries. Despite the shareholding changes, Bharti Airtel and Vodafone continue to act as promoters of Indus Towers, which commands a market cap of Rs 96,741.43 crore.