The board of telecom operator Vodafone Idea will consider and evaluate a proposal for the issuance of convertible debentures to a vendor on October 21, the company said in an exchange filing.
A convertible debenture is a type of long-term debt issued by a company that can be converted into shares of equity stock after a specified period.
"We wish to inform you that a meeting of the board of directors of the company is scheduled to be held on October 21, 2022, inter-alia, to consider and evaluate a proposal for issuance of debenture securities convertible into equity shares on a preferential / private placement basis to a vendor," the company said in the exchange notification.
Also Read: Vodafone Idea – Can it go off the grid?
The issuance will be subject to regulatory and other statutory approvals, including approval of the shareholders of the company, it added.
VIL has been trying to raise funds for some time now. According to reports, the government will acquire the equity only when the stock price is at Rs 10. VIL shares have not breached the Rs 10 level since April 2022.
Indus Towers Ltd, the country’s mobile tower company, has meanwhile asked the telecom giant to clear 80 percent of its outstanding dues immediately or face the risk of losing business after November.
On October 18, Vodafone Idea shares closed flat on the National Stock Exchange at Rs 8.45.
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