Indus Towers will return excess cash to shareholders, shares timeline on Vodafone Idea dues – CNBC TV18
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The company, in a meeting with brokerage firm JPMorgan, said that it has no plans to clear its own pending dues as it is comfortable with its leverage situation and therefore, it will return the excess cash to its shareholders.
Indus Towers expects Vodafone Idea to clear its entire ₹3,500 crore worth of past dues by the fourth quarter of the current financial year, or in a worst case scenario, in early financial year 2026.
“This should drive an increased possibility of dividend announcement for financial year 2025,” JPMorgan wrote in its note.
In an earlier note, JPMorgan had mentioned that the clearing of dues could lead to Indus Towers shareholders getting a special dividend worth ₹7.5 per share.
Earlier this week, brokerage firm Citi wrote in its note that the clearing of dues along with Indus Towers’ own free cash flows will allow the company to pay dividends between ₹11 to ₹12 per share for the second half of the current financial year.
The brokerage also goes on to say that the dividend amount to increase to ₹20 per share per annum in financial year 2026 and 2027 each.
JPMorgan has an “overweight” recommendation on Indus Towers with a price target of ₹520. JPMorgan’s share price implies a potential upside of 41% from current levels.
Out of the 23 analysts that have coverage on Indus Towers, 12 of them have a “buy” rating on the stock, five of them say “hold”, while six have a “sell” recommendation on the stock.
Shares of Indus Towers are currently trading 1.1% higher at ₹367.7. The stock is up 81% so far in 2024.
