Shares of Indus Towers jumped nearly 4% on Tuesday after a global brokerage noted that the firm could stand to gain from Vodafone Idea’s successful follow-on public offer (FPO).

What Happened: The telecom tower installation stock was upgraded to “buy” by CLSA, with a revised target price of ₹450, up from the previous target of ₹335.

CLSA highlighted Indus Towers as a potential major beneficiary of Vodafone Idea’s fundraising efforts and its plan to add around 48,000 sites for 4G and 5G technologies.

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The brokerage revised its forecasts for Indus Towers for CY2025 and CY2026, incorporating an additional 24,000 tenancies. This adjustment is expected to boost the EBITDA growth to 10% year-on-year for CY26, the brokerage said.

Vodafone Idea reportedly owes Indus Towers around ₹7,000 crore. The brokerage also indicated that Vodafone Idea’s past dues settlement of ₹5,700 crore could potentially add ₹21 per share to the Indus Towers’ value.

In its follow-on public offer (FPO), Vodafone Idea’s shares were oversubscribed 6.36 times on the final day, with investors bidding for 8,011.80 crore equity shares. The telecom operator has successfully raised ₹18,000 crore through the FPO—a part of its strategy to raise ₹45,000 crore through a mix of debt and equity to repay its dues and invest in network expansion.

Price Action: Indus Tower’s share price was up 4.05% at ₹363.95 in afternoon trade, while Vodafone Idea’s share price gained 9.3% to trade at ₹14.10.

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