The board of Indus Towers Limited has approved raising funds through the issuance of non-convertible debentures (NCDs) of up to Rs 15 billion in multiple tranches on a private placement basis. 

According to an exchange filing, the board-constituted committee of directors for fundraising in its meeting held on November 25, 2022, has, inter alia, approved the offering of NCDs of a total up to Rs 15 billion (base issue size of Rs 10 billion and green show option of up to an additional Rs 5 billion) in three series on private placement basis. 

At the company’s earnings call for the second quarter held in October 2022, Vikas Poddar, chief financial officer, Indus Towers, said that the company is raising funds through the 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. He had also informed that the money would be used for investment towards the company’s growth and funding capex needs.