Indus Towers shares fall 7% after board delays bonus, buyback announcements after Q4 results
Published on 02/05/2025 09:36 AM
Indus Towers shares fall 7% after board delays bonus, buyback announcements after Q4 resultsThis would have been the first instance of 4 lakh small shareholders of Indus Towers receiving bonus shares, in case such an announcement would have been made.By Hormaz Fatakia May 2, 2025, 9:36:02 AM IST (Updated)2 Min ReadShares of Indus Towers fell as much as 7% on Friday, May 2, in reaction to its fourth quarter results, and a delay in their proposal to enhance shareholder value. The stock is among the top losers on the Nifty 500.
Indus Towers did not announce the shareholder value enhancement proposals that the board also planned on considering along with the quarterly financials.
The tower company had informed the exchanges last week that the board plans on enhancing shareholder value through either a share buyback, bonus issue of shares or debentures or dividends.
"After detailed deliberations, the board has decided to constitute a committee to comprehensively evaluate all options and dimensions and make a suitable recommendation to the board for a final decision," Indus Towers said in its exchange filing.
This would have been the first instance of 4 lakh small shareholders of Indus Towers receiving bonus shares, in case such an announcement would have been made.
Indus Towers had carried out a share buyback in 2024, its first after 2016. The stock is still trading below its share buyback price of ₹465 per share, having made a 52-week high of ₹460.
Brokerages were anticipating dividends between ₹10 to ₹20 per share from Indus Towers this time around, after its largest customer, Vodafone Idea began clearing all of its dues.
Indus Towers reported a 2.4% growth in its revenue on a sequential basis, while on a year-on-year basis, the topline grew by 7.4%.
Reported margins for the quarter were lower sequentially due to reversal of provisional doubtful debts from Vodafone Idea.
Shares of Indus Towers are trading 6% lower on Friday at ₹384. The stock had gained 15% in the last one month as of Wednesday's closing.Continue ReadingFirst Published: May 1, 2025 7:54 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsbonusDividend stocksIndus TowersIndus Towers shareIndus Towers sharesshare market today