Indus Towers Dividend: Shareholders of tower company Indus Towers Ltd (NSE: INDUSTOWER) may get a strong dividend.
The reason for this is that the company plans to offer more cash to shareholders. However, the company says that this work will be done after receiving the dues from Vodafone Idea.
It is not that Indus Towers Ltd does not have any dues, but the company says that it does not have any problem with its debt situation at the moment, so instead of settling the dues with extra cash, it is planning to give it to the shareholders.
When Can Vodafone Idea Pay The Dues?
Indus Towers Ltd hopes that Voda Ideafone can pay its entire previous dues of Rs 3500 crore by the fourth quarter of this financial year 2024-25 i.e. March 2025 quarter.
Indus Towers believes that even in the worst-case scenario, Vodafone Idea can pay these dues by the beginning of the next financial year 2026.
According to a global brokerage firm’s note, this may increase the possibility of a dividend announcement in FY 2025.
How Much Dividend Will Indus Towers Shareholders Get?
In its earlier note, the global brokerage firm had estimated that Indus Towers Ltd shareholders could get a dividend of Rs 7.5 per share if the dues were received.
Earlier this week, another brokerage firm estimated in its note that after the dues are cleared, Indus Towers Ltd’s free cash flow combined with the company’s shareholders could get a dividend of Rs 11-12 in the second half of this financial year.
The brokerage also says that it can distribute a dividend of ₹ 20-₹ 20 in FY 2026 and FY 2027.
What Is The Trend Of Brokerages On Shares?
From the 23 analysts who cover Indus Towers analysts have given the company a buy rating 5 have assigned it a hold rating, and six have assigned it a “sell” rating. The international brokerage firm has assigned its stock an “overweight” rating and a target rate of 520 rupees.
Talking about the current price, on Friday it closed at Rs 364.70 with a gain of 0.33 percent on BSE. Talking about the movement of shares in one year, last year on 21 December 2023, it was at a one-year low of Rs 176.45, and on 2 September 2024, it was at a seven-year high of Rs 460.70.
Quick Fact
| Company name | Indus Towers |
|---|---|
| Stock price | ₹364.90 (0.37% up) |
| Dividend Plan | Strong possibility |
| Conditions | After Vodafone Idea pays dues |
| Vodafone Idea Dues | ₹3500 crore |
| Expected Dues Clearance | By March 2025 (FY 2024-25) |
| Worst-Case Payment Timeline | Early FY 2026 |
| Possible Dividend (2024-25) | ₹7.5 per share |
| Possible Dividend (Second Half 2024) | ₹11-₹12 per share |
| Possible Dividend (FY 2026 & 2027) | ₹20-₹20 per share |
| Analyst Ratings | 23 analysts cover shares |
| Buy Rating | Given by 12 analysts |
| Hold Rating | Given by 5 analysts |
| Sell Rating | Given by 6 analysts |
| Brokerage View | Overweight rating |
| Possible Target Price | ₹520 |
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