Shares of Indus Towers Ltd. will be in focus on Wednesday after the company approved a buyback of its equity shares along with its June quarter results after market closing on Tuesday.

The company has approved to buyback up to 5.67 crore equity shares or 2.1% of the total equity shares in the paid-up share capital of the company for a total buyback consideration of ₹2,640 crore.

Indus Towers will buyback shares at a price of ₹465 apiece, which is a premium of just 4% from the stock’s closing price on Tuesday, which was ₹447.95. It must be noted that shares of Indus Towers have already risen 120% so far in 2024.

The buyback will be done via the “Tender Offer” route, which means that the shares will be repurchased at the fixed price.

This is the first share buyback from Indus Towers in eight years. The last instance of the company approving a buyback was back in 2016, when it was known as Bharti Infratel.

August 9, 2024 has been fixed as the record date for the share buyback of Indus Towers.

There has been a rush on Dalal Street to announce buybacks after Finance Minister Nirmala Sitharaman in her Budget speech last week announced some changes to the taxation aspect of the share buyback. The income received via buybacks will now be taxed at the hands of the shareholder instead of the company, and the changes will kick in on October 1.

Since then, as many as six companies, including Indus Towers, such as Welspun Living, TTK Prestige, AIA Engineering, Savita Oil Technologies, Cera Sanitaryware, have announced or have scheduled board meetings to announce buybacks in the next one week.

Along with the share buyback, Indus Towers also announced its June quarter results, where its net profit went up by 43% from last year to ₹1,925.9 crore. Revenue for the quarter increased by 4.3% to ₹7,383 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter also grew by nearly 30% year-on-year to ₹4,545.3 crore. EBITDA margin saw an expansion to 61.6% from 49.7% last year.

Shares of Indus Towers ended 1% higher on Tuesday ahead of the earnings announcement at ₹447.95.