The tower company announced in an exchange filing on Tuesday that the share buyback offer of Indus Towers will begin on Wednesday, August 14, and end on August 21.Â
“To eligible shareholders who held equity shares of the company as on August 9 (the Record Date), the company has e-mailed the Letter of Offer today, August 13, in compliance with the Buyback Regulations,” Indus stated in its statement.
Minimize Tax Implications
On the record date, these would be the equity shareholders or beneficial owners of Indus’ equity shares. On Tuesday, Indus shares finished at Rs 405.65, down 2.46% on the BSE. The Indus board approved the repurchase of 56.7 million equity shares earlier this month at a cost of Rs 465 per share.
The record date for establishing the entitlement and the identities of equity shareholders qualified to take part in the buyback was set for August 9. Bharti Airtel, the largest shareholder in Indus, has decided not to take part in the share repurchase plan of the towerco.
Senior management at Indus recently stated that the business’s goal in announcing a share buyback is to distribute funds to shareholders in a way that minimizes tax implications, particularly since the company hasn’t paid a dividend in the previous two years.
They had also mentioned that buybacks are a great method to maintain distributable reserves for future dividend payments.
