Indus Towers soars to 52-week high after American Towers decides to convert its Vodafone Idea OCDs into equity

Indus Towers hit a 52-week high of Rs 286.10 on BSE on Tuesday (March 26, 2024) after American Towers decided to convert its Vodafone Idea Optionally Convertible Debentures (OCDs) into equity. After American Towers' decision, the possibility of Indus Towers' recovery of dues from Vodafone Idea has gathered strength. 

The stock that began its journey at 279.00 in the morning on Tuesday rose to the 52-week high of Rs 286.10, a 5.69 per cent rise from Friday's close of Rs 270.70.  

Indus Towers shares closed trading up by 4.80 per cent, or Rs 13.00, at Rs 283.70 each at 11:22 am on Tuesday.

Why are Indus Towers shares rising today?

American Towers has decided to convert its Vodafone Idea Optionally Convertible Debentures (OCDs) into equity.

The company will convert OCDs worth Rs 1440 crore out of total worth Rs 1600 crore it holds.

Indus Towers owes Rs 5700 crore to Vodafone Idea.

After American Towers' call, the recovery of dues is possible soon for vendors like Indus Towers.

Indus Towers can generate a free cash flow of Rs 4,000 crore in FY25.

For Indus Towers, there is also a possibility of getting further dividends.

Citi On Indus Towers 

Citi has maintained a 'buy' call on Indus Towers with a target of Rs 320.  

The brokerage has a near-term positive view on the stock.

Its target can increase up to Rs 400 in a bull case.