ATC to get 2.9% in Vodafone Idea, converts OCDs worth ₹1,440 cr to equity

livemint.com:

₹1,440 crore from optionally convertible debentures, or OCDs, to ATC Telecom Infrastructure, the loss-making carrier told the Bombay Stock Exchange on Tuesday. ATC will hold 2.9% of the revised shareholding after conversion, the company told Mint. “As per the terms of the OCDs, on March 18, 2024, ATC has requested VIL for conversion of 14,400 OCDs amounting to ₹1,440 crore into 1.44 billion fully paid-up equity shares of face value of ₹10 each.

VIL will take necessary actions to allot the equity shares to ATC pursuant to the conversion of the said OCDs, as per the terms of the OCDs," the carrier said in the exchange filing. Vodafone Idea owes significant dues to vendors and tower services providers including ATC and Indus Towers, which the carrier is yet to clear. To be sure, ATC is exiting the Indian market.

The Aditya Birla Group company had issued OCDs amounting to ₹1,600 crore to ATC Telecom Infrastructure Private Ltd (ATC) in October 2022, proceeds of which were used for payments of dues to ATC. The conversion price of ₹10, at the time of OCD issuance, was at a premium to the then prevailing market price of VIL share, the company said. In August 2023, term of redemption of the first tranche of OCDs amounting to ₹800 crore was extended by 12 months.

The cash-strapped telco which is the third largest by subscribers is in the process of raising ₹45,000 crore including a ₹20,000 crore equity-based fund raise from existing investors. A shareholder meet for the fund raise is expected to take place on 2 April, post which the operator expects to complete the equity fund raise by the end of the upcoming June quarter. Following the equity fund raise, Vodafone-Idea will further look to raise the remaining amount as debt.