In a regulatory exchange filing, Indus Towers Limited has disclosed its plans to raise funds of up to Rs 15 billion through issuance of non-convertible debentures (NCDs) in three tranches, on a private placement basis. To this end, the company’s board has approved the allotment of 15,000 rated, listed, unsecured, redeemable NCDs of face value of Rs 1,000,000 each in three series, aggregating up to Rs 15 billion on private placement basis.
The funds via issuance of NCDs will be raised in three tranches or series of Rs 7.50 billion, Rs 3.75 billion and Rs 3.75 billion, respectively. According to the exchange filing, the tenure of the three series would be 24, 30 and 36 months.
During its second quarter earnings call in October 2022, the company had noted that is raising funds via issuance of NCDs as it is classified as a large corporate, and is accordingly, required to comply with a provision of raising a minimum 25 per cent of its incremental long-term borrowing by way of debt securities. The company also mentioned that the funds would be used for investment towards the company’s growth and funding capex needs. Of late, Indus had recently made a provision of Rs 17.71 billion towards doubtful debt in the second quarter (Q2) of FY’2022-23 as the company was yet to receive payment from Vodafone Idea Limited (Vi). Meanwhile, Indus Towers has also agreed to Vi’s request for softer payment terms.
