I checked the second point - stock definitely seems to have reacted to that. But it looks like Indus is not very undervalued based on Brookfield’s acquisition price (If we assume ATC and Indus have the same type of towers).
Brookfield paid US$ 2.5B for 77k ATC towers, which is around US$32.4k / INR 27 lakh per tower. If we multiply Indus’ 204k towers by INR 27 lakh, we get an enterprise value of INR 55,080 Cr. This is slightly lower than current EV of Indus : 55,960Cr. market cap + 4,500 Cr. net debt = 60,460 Cr. EV.
However, I think ATC towers may not be as valuable as Indus based on the tenancy factors (1.54 for ATC vs. 1.79 for Indus). This points to Indus having more large towers (ground-based towers) compared to smaller ones (feather sites and antennas). If I multiply the EV by this factor (1.79/1.54), I get a total EV for Indus of 64,021 Cr. (slightly higher than current EV). Note: this is only my speculation, without having done a thorough asset scan of both companies.
However, one other tangible advantage for Indus is that there are fewer competitors in the field and more expectations for rational pricing (knowing that Brookfield would look to get a good return on acquisition price). So, there are probably lower chances of a price war now.
Sources: