According to a regulatory filing, Vodafone Idea Limited (Vi) and its vendor, ATC Telecom Infrastructure, have agreed to extend the last date for subscription of Rs 16 billion optionally convertible debentures to February 28, 2023 or any later date as may be mutually agreed, subject to fulfillment of certain conditions precedent. The conditions for approval include approval of Vi shareholders and conversion of interest liability on the company arising from the deferment of adjusted gross revenue (AGR) and spectrum dues into equity shares by the government.
Vi’s proposal to issue Rs 16 billion debentures to mobile tower vendor ATC Telecom Infrastructure has lapsed in the absence of any response from the government on the conversion of interest dues into equity. In November 2022, shareholders of Vi approved issuing optionally convertible debentures (OCDs) worth Rs 16 billion to ATC Telecom Infrastructure on a preferential basis to settle dues of the infrastructure vendor by converting the due amount into equity, if the amount remained unpaid in 18 months. It was also subject to approval of the government.
Meanwhile, the operator was of the view that by the time of issuing OCDs, the government would have converted the interest from deferment of AGR and spectrum dues owed by the company into equity. However, the government has not yet converted the interest liability of the operator into equity of the company. The government has given telecom operators an option of paying the interest in deferred spectrum installments and AGR dues by way of conversion into equity.
