Indus Towers share declines 3% after Airtel dismisses talks of acquiring stake

Industry:    1 week ago

The shares of Indus Towers declined 3% on Wednesday on BSE to the day’s low of Rs 348 after Sunil Mittal-owned Bharti Airtel dismissed news of being in talks to acquire a stake in the company.

Earlier reports had said that Airtel was in conversation with Vodafone group to potentially acquire a controlling stake in Indus Towers. Airtel has now, in a letter to the exchanges, clarified that such is not the case.

“Bharti Airtel Limited is not in any discussion with Vodafone Group to acquire such a stake in Indus Towers Limited. The Company has no desire to raise its stake beyond what is required for financial consolidation of Indus in the Company, which shall be done as and when appropriate with compliance of applicable disclosure requirements,” reads the letter.

The debt-ridden Vodafone completed its Rs 18,000 crore FPO successfully on Monday, which received a strong response from anchor investors, including GQG Partners. The company has raised Rs 5,400 crore from 74 anchor investors, the firm said in a press statement on Wednesday.

Shares of Vodafone Idea also slipped nearly 7.5% to Rs 13.27 today on BSE.

Indus Towers Limited is an Indian telecommunications infrastructure company offering passive infrastructure services to mobile network operators and other wireless service providers.

Indus Towers has witnessed gains as high as 153% in the last one year, while it has grown 30% in the last month.

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