Vodafone-Idea shareholders approve issuance of Rs 1,600 crore optionally convertible debentures to ATC

Telecom operator Vodafone Idea’s shareholders have approved the preferential issuance of up to Rs 1,600 crore of optionally convertible debentures to vendor American Tower Corp (ATC), according to a regulatory filing.

The special resolution to this effect was cleared in an extraordinary general meeting (EGM) of Vodafone-Idea on February 25.

“The following items of business as set out in the notice dated January 31, 2023, were transacted at the EGM... issue of securities on a preferential basis,” the company said in a BSE filing.

An overall 99.99 per cent of the votes were in favour of the resolution, which pertained to the issue of optionally convertible debentures of up to Rs 1,600 crore to American Tower Corp.

The telco had earlier said that these funds would be used to pay amounts owed to ATC India under the master lease agreements and, to the extent of the remainder, for general corporate purposes.

The board of Vodafone-Idea had in January given approval for the allotment of optionally convertible, unsecured, unrated and unlisted debentures worth Rs 1,600 crore to ATC Telecom Infrastructure Pvt. Ltd.

This is the second such issue as Vi's board had first approved the preferential issue of OCDs to ATC Telecom Infrastructure at an EGM on November 21, 2022.

In November 2022 too, at the EGM of the company, the shareholders of Vodafone Idea had approved the issuing of shares worth Rs 1,600 crore to ATC Telecom Infrastructure, the Indian arm of ATC, on a preferential basis to settle dues of the infrastructure vendor by converting the due amount into equity, if the amount remained unpaid in 18 months.