**Bharti Hexacom Halts Tower Sale to Indus Towers Amid Regulatory Concerns**
**Meta Description:** Bharti Hexacom pauses its ₹1,134 crore tower sale to Indus Towers due to intervention from TCIL, emphasizing corporate governance and compliance.
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**Bharti Hexacom Halts Tower Sale to Indus Towers Amid Regulatory Concerns**
In a significant development, Bharti Hexacom, a subsidiary of Bharti Airtel, has temporarily suspended its agreement to sell 3,400 telecom towers to Indus Towers for ₹1,134 crore. This decision follows an intervention by Telecommunications Consultants India Ltd (TCIL), which holds a 15% stake in Indus Towers. TCIL has requested that Bharti Hexacom initiate a new process that aligns with the requirements of a public sector undertaking.
In a filing made late Wednesday, Bharti Hexacom stated, “The management and the Board remain convinced about the business logic and merit of the proposal. However, in adherence to the highest standards of corporate governance and transparency, it has been agreed to put the current proposal on hold and conduct a fresh exercise in consultation with TCIL.”
According to Shiju PV, a senior partner at IndiaLaw LLP, public sector undertakings must exercise caution when selling assets. He noted that the process should involve proper valuation, inviting offers, and obtaining approval from the Department of Investment and Public Asset Management. This adherence to protocol is likely the reason behind TCIL’s intervention.
Analysts suggest that Bharti Hexacom may prefer not to sell its tower assets through a bidding process, as Indus Towers is also a subsidiary of Bharti Airtel. This could lead to interest from external companies looking to acquire the towers.
In February, Bharti Airtel and Bharti Hexacom reached an agreement with Indus Towers to transfer a total of 16,100 telecom towers through a slump sale. Bharti Airtel was set to sell approximately 12,700 towers valued at ₹2,174.6 crore, while Bharti Hexacom was to sell its 3,400 towers for ₹1,134.1 crore. Indus Towers has already completed the tower sale deal with Bharti Airtel.
As of December 2024, Indus Towers operates a portfolio of 234,643 towers and 386,819 co-locations, competing with Brookfield-owned Altius, which boasts over 257,000 towers.
Established in 1978, TCIL is an engineering and consultancy firm specializing in telecommunications and information technology. Its expertise spans switching, transmission, cellular services, rural telecom, optical fiber networks, IT, and networking solutions. In 1995, TCIL partnered with Mobile Telecommunications Company (Kuwait) and Shyam Telecom Ltd to create Hexacom India, aimed at providing mobile services in Rajasthan and the Northeast. The company was renamed Bharti Hexacom in 2004 after Airtel acquired a majority stake.
**FAQ**
**Why did Bharti Hexacom halt the tower sale to Indus Towers?**
Bharti Hexacom paused the sale due to TCIL’s intervention, which emphasized the need for compliance with public sector regulations and corporate governance standards.