Shares of Indus Towers Ltd jumped 1.80% to ₹404.50 in early trade on April 28, 2025, after the company announced that its board will meet on April 30 to consider multiple shareholder reward options, including a dividend, bonus issue, or share buyback.
The company confirmed in a stock exchange filing late Sunday evening that the board will evaluate “various methods to enhance shareholder returns,” which could involve a bonus issue through shares or debentures, a dividend payout, a share buyback, or a combination of these measures.
If a bonus issue is announced, it would mark the first-ever for Indus Towers since becoming a public company.
The speculation has heightened especially after Indus Towers recovered pending dues from Vodafone Idea, which had earlier hampered its cash flows. With cash flow generation improving — ₹2,700 crore reported in the December quarter — analysts now expect a possible dividend payout of ₹15 to ₹20 per share.
Citi had previously suggested that a similar level of free cash flow in the March quarter could justify a full ₹20 per share dividend, while JPMorgan had estimated a possible special dividend of ₹7.5 per share upon dues clearance.
At the end of March 2025, Indus Towers had over 4 lakh small shareholders, owning 2.82% of the company, while mutual funds held over a 13% stake.
As of today, the stock is trading near ₹404.50, significantly up from its March levels, having already gained nearly 20% in the last one month and about 15% year-to-date in 2025.
Investors will be closely watching the outcome of the April 30 board meeting, which could unlock further value for shareholders.
