Indus Towers’ shares rose by over 3% after a significant Supreme Court ruling in the company’s favor. The court granted telecom and tower companies, including Indus Towers, Vodafone, and Bharti Airtel, the right to claim Central Value-Added Tax (Cenvat) credits on duties paid for key infrastructure components, such as tower parts and shelters. This decision is expected to reduce Indus Towers’ contingent liability by Rs 3,704 crore.
The Supreme Court upheld a previous Delhi High Court ruling that allowed Indus Towers to claim the Cenvat credit, overturning an earlier Bombay High Court decision that had denied Bharti Airtel and Vodafone similar claims. The Bombay HC had excluded these items from credit eligibility by categorizing them as non-capital goods. The Supreme Court’s ruling is seen as a major win for the telecom industry, bringing considerable financial relief to the companies involved.
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Indus Towers share price rose as much as 3.61% to Rs 340 apiece. It pared gains to trade 0.59% higher at Rs 330 apiece, as of 09:40 a.m. It has risen 76.19% in the last 12 months. Total traded volume so far in the day stood at 8.5 times its 30-day average. The relative strength index was at 37. Out of 24 analysts tracking the company, 12 maintain a ‘buy’ rating, five recommend a ‘hold,’ and seven suggest ‘sell,’ according to Bloomberg data.
