Mumbai: Indus Towers Ltd, India's top telecom tower firm, announced incorporating a wholly owned subsidiary in GIFT City, Gujarat, that will serve as an investment holding company for its overseas subsidiaries.
As per a regulatory filing Thursday, the company said the wholly owned subsidiary (WOS) will serve as an investment holding company for Indus Towers' overseas subsidiaries while also managing treasury functions such as cash pooling and related activities allowed under GIFT City's IFSC framework. These operations will support the parent and group entities, tapping tax perks and global finance ease in the hub, it said.
Indus plans an initial cash investment of up to Rs 20 crore in one or more tranches for 100% ownership, with no share swap or other forms involved. As a new entity, it qualifies as a related party transaction at "arm's length," or fair market rates, with promoters and group firms holding no extra interests.
Incorporation awaits the Ministry of Corporate Affairs (MCA) nod and other regulators. The name and full details are awaiting approval by relevant authorities as well.
No fixed completion date has been announced, and further updates are expected post-approval.
This comes as Indus Towers is poised for positive growth and increased cash flow as Vodafone Idea, a prominent client for the company, now faces lower survival risk following government AGR relief measures.
As per a regulatory filing Thursday, the company said the wholly owned subsidiary (WOS) will serve as an investment holding company for Indus Towers' overseas subsidiaries while also managing treasury functions such as cash pooling and related activities allowed under GIFT City's IFSC framework. These operations will support the parent and group entities, tapping tax perks and global finance ease in the hub, it said.
Indus plans an initial cash investment of up to Rs 20 crore in one or more tranches for 100% ownership, with no share swap or other forms involved. As a new entity, it qualifies as a related party transaction at "arm's length," or fair market rates, with promoters and group firms holding no extra interests.
Incorporation awaits the Ministry of Corporate Affairs (MCA) nod and other regulators. The name and full details are awaiting approval by relevant authorities as well.
No fixed completion date has been announced, and further updates are expected post-approval.
This comes as Indus Towers is poised for positive growth and increased cash flow as Vodafone Idea, a prominent client for the company, now faces lower survival risk following government AGR relief measures.
