The board of Vodafone Idea Limited (Vi) is expected to meet on January 31, 2023 to reset the timeline of the preferential issue of optionally convertible debentures (OCDs) to American Tower Corporation (ATC). The telco has failed to conclude the issuance within the earlier agreed timeline due to the delay in the government converting its Rs 161.30 billion accrued interest on deferred adjusted gross revenue (AGR) related dues into equity.
Additionally, the telco will also discuss convening an extraordinary general meeting to seek approvals by shareholders for the same. Besides, in a filing to the Bombay Stock Exchange, Vi noted that the shareholder resolution dated November 21, 2022, approving the preferential issue of optionally convertible debentures OCDs to ATC had lapsed as the OCDs could not be issued within the prescribed period of 15 days and that a fresh approval of the shareholders would be sought as required.
Vi had originally announced the issue of rupee-denominated OCDs to ATC to raise Rs 16 billion. The operator aimed at using the funds to repay dues (estimated at under Rs 20 billion) to the ATC. The equity conversion by the government is critical for Vi to induct investors and raise funds for expanding its 4G network, outlining its 5G rollout plans and clearing vendor dues. Once the conversion happens, analysts suggests that the government will hold about 33 per cent of Vi’s equity and become the single-largest shareholder in the entity. However, the government is believed to have pushed Vi to present a clear fund-raising plan, including more promoter infusion, before it goes ahead with the conversion.
