Altius Telecom Eyes Rs 9,000 Cr IPO to Tackle Debt in India's Tower Sector
09 March 2026
Altius Telecom Infrastructure Trust is preparing for a major IPO, planning to raise up to Rs 9,000 crore. The funds are mainly set aside to significantly reduce the company's debt, accumulated during its aggressive expansion. The offering will also include a partial stake sale by sponsor Brookfield Asset Management. This move taps into growing domestic demand for capital to support India's expanding telecom infrastructure, a sector benefiting from 5G rollout and rising data usage.
IPO for Debt Reduction
Altius Telecom Infrastructure Trust's planned Rs 9,000 crore fundraising marks a significant shift, moving the company from aggressive expansion to a stronger financial footing. The primary goal of this capital raise is to reduce its substantial debt, a move crucial for balancing its books while still capitalizing on strong demand for India's telecom infrastructure.
Rapid Expansion and Scale
Altius Telecom has rapidly scaled its operations, growing from about 136,000 telecom sites in 2019 to over 257,000 by the end of 2025. This expansion was driven by acquisitions, including Reliance Jio's towers and, more recently, over 76,000 towers from American Tower Corporation in 2024 for Rs 18,200 crore. This rapid growth has made Altius India's second-largest tower operator with a 39% market share, just behind Indus Towers' 42%. The trust's assets include ground-based towers, rooftop sites, and in-building installations. Financially, revenue jumped from roughly Rs 3,600 crore in FY21 to about Rs 9,800 crore in FY25, with EBITDA rising from Rs 3,000 crore to Rs 7,000 crore in the same period. However, this growth came with significant leverage, reflected in a debt-to-equity ratio averaging around 3.07 times. As of December 31, 2025, its net debt was INR 437 billion. The planned IPO directly targets this high leverage.
Facing Off Against Competitors
Altius faces tough competition, primarily from Indus Towers, which holds a larger market share and a much healthier balance sheet. Indus Towers has a debt-to-equity ratio of just 0.07 (2.6%), a significant difference from Altius's high leverage. Indus also boasts strong interest coverage ratios, typically above 7.1x. This contrast in financial risk makes Altius's IPO proceeds vital for reducing its risk profile and competing effectively in the capital-intensive telecom sector. Investor presentations show Altius is focused on optimizing its capital structure, with the IPO being a key part of this plan.
Attracting Domestic Investors
The timing for Altius's IPO appears favorable, catching a wave of domestic investor interest in Infrastructure Investment Trusts (InvITs). Local institutions and high-net-worth individuals are seeking stable, yield-generating assets, a trend accelerated as foreign investor interest has softened due to global interest rate hikes and currency volatility. This pattern is similar to capital flows seen in the Real Estate Investment Trust (REIT) market. Altius's offering follows the recent Rs 6,000 crore IPO of NHAI's Raajmarg Infra Investment Trust, which also tapped into domestic capital for national highway assets. This strong domestic demand is vital for Altius, particularly as some recent IPOs have seen weak market debuts.
Key Risks and Challenges
Despite strong demand for InvITs, Altius Telecom faces notable risks. Its aggressive expansion led to a high debt-to-equity ratio, making debt reduction through this IPO critical. If debt is not sufficiently lowered, the company could become vulnerable to interest rate changes and operational issues, especially given the ongoing investment needs in infrastructure. Brookfield Asset Management's planned partial stake sale, while not a full exit, signals a strategic shift rather than unwavering commitment to Altius's current structure. Although Brookfield plans to expand its India investments significantly, its partial exit from Altius raises questions about its capital allocation in the telecom tower sector. Moreover, cautious sentiment in the primary market has led to mixed results for recent IPOs, potentially affecting investor enthusiasm and Altius's valuation. The company's substantial net debt of INR 437 billion highlights how crucial the IPO's success is for its financial stability.
Growth Prospects
India's telecom infrastructure sector is poised for significant growth, fueled by the 5G rollout, rising data consumption, and government support for digital connectivity. Tower density in India remains low compared to global levels, indicating a multi-decade opportunity for network expansion. Projections suggest a need for 70,000-75,000 new towers annually through 2030. Altius is well-positioned to capitalize on this growth, assuming it successfully manages its debt reduction. The strong inflow of domestic capital into the InvIT market provides a key funding source. However, long-term success will hinge on maintaining its competitive edge against players like Indus Towers, smart financial management, and adapting to new technologies.