Vodafone Idea gets shareholders' nod to issue debentures worth Rs1,600 crore to ATC Telecom

23 Nov 2022 , 10:28 AM

According to a regulatory filing, Vodafone Idea Limited‘s sharholders have approved the issue of preferential shares worth Rs1,600 crore to ATC Telecom Infrastructure.

The board of Vodafone Idea Limited has approved settling Rs1,600 crore in dues to equipment vendor ATC Telecom by converting the amount into equity if the amount is not paid within 18 months.

According to the scrutiniser’s report, 99.99% of shareholders voted in favour of the “special resolution for the issue of securities on a preferential basis” during the Extraordinary General Meeting (EGM) held on November 21.

VIL is raising the funds through equity convertible debt bonds with a coupon rate of 11.2% per annum payable every six months over the term of the bond.

The funds raised, according to the company, would be used to pay amounts owed to ATC under the master lease agreements as well as for general corporate purposes.

The Optionally Convertible Debentures (OCDs) have a maximum term of 18 months from the date of issue and allotment of the first tranche of OCDs.

VIL has chosen to convert approximately Rs16,000 crore of interest liability payable to the government into equity, amounting to approximately 33% stake in the company, while promoters’ holding will drop to 50% from 74.99%.

At around 10.24 AM, Vodafone Idea was trading at Rs8.28 down by 0.96% from its previous closing of Rs8.36 on the BSE. The scrip opened at Rs8.33 and touched intraday high and low of Rs8.39 and Rs8.26 respectively.

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