Vodafone Idea Ltd (VIL) informed the exchanges that American Tower Corp (ATC) has requested VIL for conversion of 14,400 OCDs amounting to ₹1,440 crore into 144 crore fully paid-up equity shares of face value of ₹10 each. “VIL will take necessary actions to allot the equity shares to ATC pursuant to the conversion of the said OCDs, as per the terms of the OCDs,” Vi said in its exchange filing. 

VIL had issued Optionally Convertible Debentures (OCDs) amounting to ₹1,600 crore to ATC Telecom Infrastructure Private Ltd in February 2023. This is in addition to the fact that Vi has extended the term of redemption on its first tranche of OCDs (worth ₹800 crore) by 12 months in August 2023.

The OCDs were essentiallyissued on the debt accumulated by Vi to ATC, when it was not able to make its vendor payments to the firm. Vi was the largest customer for ATC and has been unable to make its payments for several months due to liquidity issues. Vi’s total debt to ATC amounts to ₹3,600 crore. 

While Brookfield has acquired the India unit of ATC in an all-cash deal of $2.5 billion, which is expected to close in the second half of 2024, ATC will retain the full economic benefit of the OCDs issued by Vi as per the agreement. 

Fundraise plans

Additionally, Vi also informed the exchanges on Tuesday that its executives will meet with institutional investors in Singapore on Wednesday in their bid to raise funds for the cash-strapped firm. Similar meetings are lined up in Mumbai on Thursday and Friday. 

Last month, Vi’s board had approved a ₹45,000-crore fundraising plan, through both equity and debt. This included a ₹20,000-crore equity-based fund raise from existing investors.

Related Topics
comment COMMENT NOW