Indus Towers Limited Buyback 2024
1. Merger and Formation: Indus Towers Limited was formed by the merger of Bharti Infratel Limited and Indus Towers, making it one of the largest telecom tower companies in the world.
2. Communication Enabler: The company plays a crucial role in enabling communication for millions of people daily by providing affordable, high-quality, and reliable network connectivity services across India.
3. Extensive Infrastructure: As of March 31, 2024, Indus Towers Limited operates over 219,736 towers and 368,588 co-locations, ensuring a robust infrastructure for telecom services nationwide.
4. Nationwide Presence: Indus Towers has a nationwide presence covering all 22 telecom circles in India, making it a critical player in the country’s telecom infrastructure.
5. Leading Customers: The company’s leading customers include major wireless telecommunications service providers in India such as Bharti Airtel (including Bharti Hexacom), Vodafone Idea Limited, and Reliance Jio Infocomm Limited.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Aug 09 2024 |
| Buyback Opening Date: | Aug 14 2024 |
| Buyback Closing Date: | Aug 21 2025 |
| Buyback Offer Amount: | ₹ 2640 Cr. |
| Date of Board Meeting approving the proposal: | Jul 30 2024 |
| Date of Public Announcement: | Jul 30 2024 |
| Buyback Offer Size: | 2.107% |
| Buyback Number of Shares: | 5,67,74,193 |
| FV: | 10 |
| Buyback Price: | ₹ 465 Per Equity Share |
Details of Buyback:
Salient financial parameters:
|
Particulars (In Cr)
|
Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
| Sales + | 6,743 | 13,954 | 27,717 | 28,382 | 28,601 |
| Expenses + | 3,185 | 6,775 | 12,816 | 18,713 | 14,044 |
| Operating Profit | 3,558 | 7,179 | 14,901 | 9,669 | 14,557 |
| OPM % | 53% | 51% | 54% | 34% | 51% |
| Other Income + | 1,846 | 1,262 | 458 | 85 | 361 |
| Interest | 335 | 836 | 1,603 | 1,670 | 735 |
| Depreciation | 1,282 | 2,848 | 5,325 | 5,324 | 6,060 |
| Profit before tax | 3,788 | 4,757 | 8,431 | 2,759 | 8,122 |
| Tax % | 13% | 21% | 24% | 26% | 26% |
| Net Profit + | 3,299 | 3,779 | 6,373 | 2,040 | 6,036 |
| EPS in Rs | 17.83 | 14.02 | 23.65 | 7.57 | 22.4 |
|
Dividend Payout %
|
59% | 143% | 47% | 0% | 0% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 189630 | 189630 | 189630 | 189630 |
| No. of Shares Buyback | 142 | 215 | 322 | 430 |
| Buyback Profit | 3408 | 5160 | 7728 | 10320 |
| Profit% | 1.80% | 2.72% | 4.08% | 5.44% |
49 Comments
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INDUS TOWER BUYBACK OBLIGATION OUT*
As expected (55-60%) Small Shareholder Acceptance is around 57%, 256 out of 450 shares are accepted.
Kindly check your share acceptance with your Brokers.
Great calculation
Payment received in account.More importantly, the share closed at a substantial margin above the purchase price in the share market . Pranam to Mittal Sab of Bharati Airtel and his Business Empire around the world and all the major share holders of this beautiful company.
🚨 𝕀ℕ𝔻𝕌𝕊 𝕋𝕆𝕎𝔼ℝ𝕊 𝕃𝕋𝔻. 𝔹𝕌𝕐𝔹𝔸ℂ𝕂 𝕌ℙ𝔻𝔸𝕋𝔼 🚨
🔅 Exp’t Retail Accept. : around 55-60%
▪️ Retail Entitl : 25.13%
▪️Sett. Dt.: 28/08
* Expt’d AR is based on trend of shares tendered by participants.
I am expecting 75%+ . Will know in a few days.
Indus Tower Buyback Window closed Today, Retail Acceptance can be 70%
How you have calculated?
on what date it is final acceptance ratio
Some broking firms let you know a day before the actual settlement which may generally be about a week after the closing of tender date
ER 108/430
This is the best buyback of the present series. Glad that it crossed my purchase price today by a fair margin and hope the momentum will continue.
Yes sir and what is probability of acceptance ratio?
AR will be Around 90-100%
Wow! Then I’ll be lucky enough, as i have 450 in 2 and 410 in 1 account..
ER…25%
ER For me – 108/430
~25% ER
Buyback Window – 14th August to 21st August
Indus Tower Buyback Window
Opens on 14 August & Closes on 21 August
🚨 𝕀ℕ𝔻𝕌𝕊 𝕋𝕆𝕎𝔼ℝ𝕊 𝕃𝕋𝔻. 𝔹𝕌𝕐𝔹𝔸ℂ𝕂 𝕌ℙ𝔻𝔸𝕋𝔼 🚨
Due to last two days less participation from Buyback participants and less gap between CMP and Buyback Price, my expectation for small share holders Entitlement & acceptance is revised upside.
🔅 Exp’t Retail Entitl : Above 20%
🔅 Exp’t Retail Accept. : around 50%
* All calculations are based on current market scenario and share price.
Can we sell 50% share? and tender 50% remaining share? so get 100% entitle on remaining share?
No you have to tender all your share for 50% acceptance.
Ok thanks for information
Expected AR 35% ?
I bought 450 shares assuming er will be for 100 shares.
so can i sell my 350 share and tender only 100 share
Is it possible?
Please note that there are two ratios in Buyback:
1) ER – Entitlement ratio – This is the ratio for all small share holders as per their holding and 15% reservation. It considers all the share holders on the record date, Normally the ER is low 5 -25% deping on share holding in different categories i.e. small share holder.
2) AR – Acceptance ratio – this is the ratio in which shares are actually bought back in buy back. It is always greater than ER. Normally +10 % of ER to 100%.
So if you assume ER to be 100 /450, 100 would be definitely accepted.
But for AR, you have to tender all share and ratio would be applied on all, For example if ER is 100 /450 and you tender 100, all would be accepted. If you tender more say 400, 100 would be accepted and AR would be applied on extra 200 tendered.
So depending on what is the future prospect of stock, it is normally good to hold and tender all.
I understood.thanks for reply.
Hello members, is there any way we can estimate AR? I have been searching for it but can’t find any results, kindly answer.
What would be the expected AR as promoters are not participating.
Expert please share your view
There is no meaning in speculations about possible AR.Thanks Ramesh ji for the information that promoters are not participating.Having sold my holdings of 180 nos today I hope to buy at around ₹ 130/ and participate in this buyback .
Forgive me for the typographical error of ₹130/ It stand corrected as 430/
I don’t think promoters not participating will have an impact for retail shareholders as they will probably still be less than 15% of shareholders excluding promoters.
Bharti Airtel is not participating for sure
Got any information about record date buyback size & buyback price
No update as of now…
Buyback Price: Rs.465/-
Buyback Size: 5,67,74,193 shares
Mode of the Buyback : Tender Offer
As the CMP is Rs 446.80 and the Buyback Price is Rs.465/-it is not an attractive Buyback.
Thank you so much for your early warning. Got rid of my holding @ the opening price of 448.75 itself. I think the post budget buybacks which are awaiting Board meeting outcome are going to be like this.No more buying in advance.Wish good luck to all.
Record Date: August 9 th
Size : 2.1% of the total number of the equity shares in the paid-up share capital of the Company,
Hi, Have found this platform to be of a great beneficiary to increase knowledge in the Buybacks, Thankyou for the same, Can you guys consider to start something related to M&A too if possible like recent example of Ultratech cement and India cements
Thank you friends. Good to know that so many offers are on the way 😄
Gopi ji, please share your view. You have stopped your view since few days.
Thank you Ramesh ji for your kind mention. I have not been commenting on the current trio of buybacks because of the relatively lower size which is well known at first glance to everyone.Let us hope the latest ones will be better.I have already bought few of Indus Towers and AIA Engineering. Skipping KDDL and WELSPUN. Left with 30 Aurobindo Pharma.
Thanks Gopi ji. Please keep updating. Your view worth for me.
Gopiji your expertise in markets is quite brilliant, will request you to help with these influx of buybacks. It will only help us make few bucks…
Thank you for your faith and kind words. I will be available for any help you need within my limited knowledge and experience.
Considering the tax on share buybacks effective from October 1st, we may see a surge in buyback proposals before that date. Our challenge is to identify the most promising buybacks given our limited available funds…
So, Expert , please share your valuable view to choose the right share to participate in buyback
Absolutely right, Parikh ji
Another one, Cera Sanitaryware Ltd !! Meeting for Buyback on 5th August..
Sawita oil technologies. Board meeting on 3rd August to consider buyback.