Tower Infrastructure Trust, an infrastructure investment trust (InvIT) owned by Canadian financial powerhouse, Brookfield, is planning to change its name to Data Infrastructure Trust so as to increase the future business possibilities of the Trust. The InvIT said the Trust would have a broader scope under the name “Data” which would be more reflective of the overall business profile of the Trust assets in the future, it said in a filing with the stock exchanges. At the same time, the InvIT which owns 100 per cent equity in Summit Digital Infrastructure Private Limited (SDIPL) formerly known as Reliance Jio Infratel Private Limited, will be converted from a private company to a public limited company.
Broker’s Call: Sell Indus Towers
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CMP: ₹254.25
The tenancy ratio of erstwhile Bharti Infratel now known as Indus Tower after a scheme of amalgamation peaked in FY17 to 2.34x and sharply fell to 1.87x in FY19, owing to mass exit of co-location after merger of Vodafone and Idea Cellular. Non-linear co-location addition has continued since FY19, which led to the tenancy ratio touching a 10-year low of 1.82x in Q3FY21.
As the 5G launch in India is a couple of years away, telecom companies are working on the Open-RAN (Radio Access Network) model to minimise capex and focus on revenue-linked capacity creation. As these deployments are unlikely to support sharing models, the role of tower companies will diminish to being utility infrastructure providers. Thus, the linear tenancy is unlikely to witness any meaningful upside for Indus in the next three years.
Tower Infrastructure Trust declares total distribution of Rs. 0.5949 equitybulls.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from equitybulls.com Daily Mail and Mail on Sunday newspapers.
Close to USD 18 billion that Reliance Jio and Reliance Retail mopped up from a slew of private equity transactions in 2020 has pushed up the money inflows through this route by 108 per cent to USD 33.8 billion, according to an industry report. As per the data collated by Refinitiv, private equity investments increased 108 per cent in 2020 over the previous year, with the number of deals jumping from 665 in 2019 to 791 in 2020 at USD 33.8 billion, despite the pandemic. In 2019, total PE deals stood at USD 16.2 billion. Most of the fund inflows were in the third quarter, fetching USD 24 billion, which, however, tapered off in Q4 to just about USD 4.57 billion, as per the data from the agency that tracks financial transactions at a global level.