Vi to issue debentures worth Rs 1,600 cr to ATC after condition waiver

OCDs to be converted into equity for preferential allotment to ATC, will carry 11.2% coupon rate and have a tenure of 18 months

Vodafone Idea
Aneesh Phadnis Mumbai
2 min read Last Updated : Jan 31 2023 | 8:32 PM IST
The board of Vodafone Idea (Vi) on Tuesday approved the issue of optionally convertible debentures (OCDs) worth Rs 1,600 crore to ATC Telecom Infrastructure Private Limited after the latter waived a condition that was preventing its issuance.

The proposal was passed a second time as the previous shareholder resolution for the capital raise lapsed in December.

The issue of OCDs was conditional to the issue of 33 per cent equity to the government upon conversion of interest on adjusted gross revenue dues. However, since the equity issuance to the government is held up, the issue of OCD too got stuck.

Now ATC has agreed to waive the condition precedent, said a person aware of the matter. Funds raised through the debenture issue would be used for pay pending dues of ATC under the master lease agreement and any remaining amount will be used for other corporate purposes.

The plan involves the issue of 16,000 OCDs having face value of Rs 10 lakh each to raise Rs 1,600 crore. These would be converted into equity shares of Rs 10 each for allotment to ATC on a preferential basis. The OCDs will carry a coupon rate of 11.2 per cent and have a tenure of 18 months.

ATC is one of the two large tower companies and among several vendors which has been receiving delayed payments from Vi. Last week, tower company Indus Towers said it hasn’t received any new payment plan from Vi.

On October 21, the Vi board had approved the proposal for the first time and the company’s shareholders had approved the plan on November 21.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Vodafone Idea

Next Story