Voda Idea gets board nod to raise Rs 1,600 cr from ATC via equity convertible debt bonds

Vodafone Idea board approves plan to raise Rs 1,600 crore from telecom infra firm ATC through equity convertible debt bonds.

New Delhi: Loss-making telecom operator Vodafone Idea board on Friday approved a proposal to raise up to Rs 1,600 crore from mobile tower company ATC Telecom Infrastructure, the company said in a regulatory filing.

"The Board of Directors of Vodafone Idea Limited at its meeting held today - October 21, 2022 - has, inter-alia, approved issuance of up to 16,000 Indian Rupee denominated optionally convertible, unsecured, unrated and unlisted debentures having a face value of Rs 10,00,000 each, in one or more tranches, aggregating up to Rs 1,600 crores, convertible into equity shares at a conversion price of Rs 10 per equity share, to ATC Telecom Infrastructure Private Limited," VIL said.

The optionally convertible, unlisted, unsecured and unrated debentures (OCDs) will carry a coupon rate of 11.2 per cent per annum, payable semi-annually during its term. "Maximum OCD term of eighteen (18) months from the date of issue and allotment of the first tranche of OCDs," the filing said.