Stock market today: Indus Towers shares gained over 2% in morning trade on Tuesday, February 4, after the company informed exchanges that it acquired a 26% stake in Amplus Tungabhadra Private Limited, a special purpose vehicle (SPV), for ₹27 crore.
"We wish to inform you that the Company has entered into an agreement for the acquisition of 26% of the equity share capital, on a fully diluted basis, in Amplus Tungabhadra Private Limited, a special purpose vehicle (‘SPV’), for the purpose of owning and operating a Captive Power Plant, in accordance with the regulatory requirement for captive power consumption under electricity laws," the company said in an exchange filing today.
The company will consume 50 MW of renewable energy from the Solar PV power plant in compliance with regulatory requirements for captive power plants.
This acquisition aligns with Indus Tower's renewable energy objectives, supporting the consumption of sustainable energy and advancing its Net Zero goals.
Established in October 2023, Amplus Tungabhadra Private Limited is engaged in the business of owning, establishing, constructing, operating, and maintaining necessary power stations, including renewable energy plants, and to generally generate and/or undertake captive generation, accumulate, bank, transform, distribute, transmit, trade, supply, and deal in electricity. Amplus Tungabhadra will be setting up a Solar PV captive plant of 50 MW, the exchange filing added.
Following this announcement, Indus Towers share price gained 2.45 apiece to touch the day's high of ₹358.50 on the BSE today.
The company, part of the BSE 200 index, has a market capitalization of over ₹93,000 crore.
Indus Towers recently reported its earnings for the quarter ended December 2024, wherein it saw a 4.8% year-on-year (YoY) increase in revenue to ₹7,547 crore.
Its operating performance came in strong, with earnings before interest, tax, depreciation and amortization (EBITDA) rising 93.2% YoY to ₹6,997 crore. Meanwhile, the bottomline surged a whopping 159.9% YoY to ₹4,003 crore.
“We are pleased to see our ability to maintain a dominant share of our major customers’ rollouts reap dividends in the form of robust tower and colocation additions, reiterating our superior execution capabilities and customer-centric approach. The strong additions, along with significant collections of overdue payments from a major customer, helped us record an excellent financial performance," Prachur Sah, Managing Director and CEO, Indus Towers Limited commented.
"We expect the resumption of network expansion by a major customer, coupled with the rollouts by other customers, to act as strong levers of growth. We remain cognizant of the sustainability aspect in our growth plans, and our focus on securing strategic partnerships under Green Energy Open Access is a step in that direction,” he added.
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