New Delhi: Indus Towers on Thursday said its board has approved the incorporation of a wholly owned subsidiary (WOS) in Gujarat International Finance Tec-City (GIFT City), as the telecom infrastructure major looks to streamline overseas investments and treasury functions under India’s international financial services framework.
The proposed entity, to be incorporated subject to regulatory approvals, will act as an investment holding company for Indus Towers’ overseas subsidiaries. It will also undertake treasury and other related activities permitted under the International Financial Services Centre (IFSC) regime, the company said in a regulatory filing.
The decision was cleared by a duly authorised committee of directors at a meeting held on January 22. Indus Towers plans an initial investment of up to ₹20 crore in the subsidiary, to be infused in one or more tranches through cash subscription to its share capital.
Once incorporated, the GIFT City arm will be a 100% subsidiary and, consequently, a related party of Indus Towers. The company clarified that any transactions with the WOS will be conducted on an arm’s length basis, and that promoters or promoter group entities have no interest in the proposed subsidiary beyond this structure.
The move aligns with a broader trend of Indian corporates leveraging GIFT City’s tax-efficient and globally competitive regulatory environment to centralise treasury operations, manage foreign currency exposure, and house offshore investments.
Indus Towers said the incorporation will be completed after receiving approvals from the Ministry of Corporate Affairs and other applicable statutory or regulatory authorities. Further details, including the name of the subsidiary, will be disclosed once the entity is formally incorporated.
The development underscores Indus Towers’ intent to optimise capital allocation and strengthen its international financial architecture, even as it continues to focus on its core telecom tower business in India.