Is it wise to buy Indus Towers shares after GoI’s stake raise in Vodafone Idea? EXPLAINED

Indus Towers shares have been on an uptrend for the last five straight sessions, and the telecom stock is expected to remain in focus during Tuesday’s trading. This is due to the GoI raising its stake in Vodafone Idea from 22.60% to 48.99%, converting ₹36,950 crore AGR dues into fresh equity. The market believes the development will likely help the company recover ₹500 crore in dues and declare a dividend to reward its shareholders.

According to stock market experts, this revival of Vodafone Idea can be a big boost for the beleaguered telecom company. However, they believe its revival has positive implications for Indus Towers, which provides passive telecom infrastructure to leading operators, including Bharti Airtel, Reliance Jio, and Vodafone Idea.