Vodafone Idea, ATC extend last date for subscription of the OCDs to 28 Feb

Vodafone Idea and American Tower Corporation (ATC) have mutually agreed to extend last date for subscribing optionally convertible debentures (OCDs) worth ₹1,600 crore to 28 February, 2023.

“We wish to further inform that both the Company and ATC have mutually extended the last date for subscription of the OCDs to 28th February, 2023 or such later date as may be mutually agreed, subject to fulfillment of certain conditions precedent, including inter alia the approval of the shareholders of the Company and conversion by the Government of India of interest from deferment of Adjusted Gross Revenue and Spectrum Dues owed by the Company into equity shares of the Company,” said Vodafone Idea in its regulatory filing.

Vodafone Idea‘s (VIL) proposal to issue mobile tower vendor ATC Telecom Infrastructure debentures worth ₹1,600 crore has lapsed, the telecom operator had said a few days back.

Last month, the shareholders of Vodafone Idea approved the preferential issuance of optionally convertible debentures (OCD) worth ₹1,600 crore to ATC Telecom Infrastructure to settle the infrastructure vendor’s debts by converting the outstanding balance into equity, provided that the balance was not paid within 18 months.

The telco’s plan included selling 16,000 optionally convertible, unsecured, unrated and unlisted debentures of ₹10 lakh each in one or more tranches. The bonds were to carry a coupon rate of 11.2% per annum, payable semi-annually during its term of 18 months, and will be convertible into shares at a price of ₹10 per share.

At present, Vodafone Idea owes more than ₹3,000 crore to ATC and an additional estimated ₹7,000 crore to Indus Towers, the world’s largest tower provider.

The company’s scrip ended 0.75 per cent down at ₹7.97 on BSE.