NEW DELHI: Telecom operator Vodafone Idea Limited (VIL) on Saturday said that American Tower company (ATC) has mutually agreed to extend the last date for subscribing optionally convertible debentures (OCDs) till February 28, 2023.
The telco last month had approved issuing shares worth Rs 1,600 crore to ATC Telecom Infrastructure in order to settle dues of ATC. The company last week said its proposal to issue Rs 1,600 crore debentures to mobile tower vendor ATC Telecom Infrastructure has lapsed in absence of any response from the government on the conversion of interest dues into equity.
“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.The company owes more than Rs 3,000 crore to ATC and Rs 7,000 crore to Indus
Towers, the world’s largest tower provider. The telco’s plan included selling 16,000 optionally convertible, unsecured, unrated and unlisted debentures of Rs 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 Rs 10 per share. Currently, the company’s net debt (excluding lease liabilities) is Rs 2.2 lakh crore as of September 30, 2022.
Meanwhile, the government had hinted that it is keen on converting the telco’s dues into into equity. Earlier, sources in the government told this newspaper that the telecom operator must try to get investors and raise fresh capital to survive in the market instead of waiting for the government to pick up stake in the company.
Fresh investment by Vi will show they want to remain in the Indian market and that would make the government consider holding a stake in the telco, the official had said. “The equity conversation will not give Vi major relief from dues, which it has to pay anyway.”
Vi approved Rs 1.6K cr share issue to ATC last month
The telco last month had approved issuing shares worth Rs 1,600 crore to ATC to settle dues. The telco last week said its proposal to issue Rs 1,600 crore debentures to ATC has lapsed in absence of any response from the government on the conversion of interest dues into equity