The company will consider a share buyback proposal, a bonus issue through shares or debentures, or a dividend, or any other permissible mode or combination thereof.
In case the company announces a bonus issue, this would be the first such instance for Indus Towers doing so as a public company.
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.
Speculations have increased for Indus Towers to pay a hefty dividend after having suspended doing so since 2022, owing to pending dues from Vodafone Idea Ltd., one of its largest customers, that had severely impacted its cash flow generation.
However, with Vodafone Idea having resumed payments of pending dues, analysts are expecting Indus Towers to pay a dividend between ₹15 to ₹20 per share alongside its fourth quarter results.
Indus Towers’ cash flow generation during the December quarter stood at ₹2,700 crore. Citi, in a note back then, had said that a similar level of cash flow during the March quarter would imply a free cash flow of ₹20 per share, which could be paid entirely as dividend to its shareholders.
JPMorgan also wrote back in December last year, that clearing of Indus Towers’ past dues could result in shareholders getting a special dividend of ₹7.5 per share.
Shares of Indus Towers ended 2.3% lower on Friday at ₹397. The stock has surged nearly 20% in the last one month, and has gained 15% so far in 2025.
