According to a regulatory filing, the board of Vodafone Idea Limited (Vi) has approved the issuance of shares worth Rs 16 billion to American Tower Corporation (ATC) on a preferential basis. The board has given a go-ahead to convert the due amount of Rs 16 billion to ATC into equity if the amount remained unpaid in 18 months.
In the extraordinary general meeting held on November 21, 2022, 99.99 per cent of shareholders voted in favour of the special resolution for the issue of securities on a preferential basis.
Vi is raising the amount through equity convertible debt bonds with a coupon rate of 11.2 per cent per annum payable every six months during its term. According to the telco, the funds raised would be used to pay amounts owed to ATC under the master lease agreements and for general corporate purposes. The maximum term of the optionally convertible debentures (OCDs) is 18 months from the date of issue and allotment of the first tranche of the OCDs.
In October 2022, Vi informed that the preferential issue would be subject to certain conditions precedent, including inter alia the approval of the shareholders of the company and the government having converted the interest from deferment of adjusted gross revenue (AGR) and spectrum dues owed by the company.
