Debt-ridden Vi (Vodafone Idea) has informed the stock exchanges that it has allotted debentures worth Rs 1,200 crore to ATC Telecom Infrastructure Private Limited.
The balance of debentures worth Rs 400 crore shall be allotted upon receipt of the application form and subscription money and due intimation of the same shall be filed as necessary, VIL said in a regulatory filing.
Earlier, Vodafone Idea's shareholders had approved the preferential issuance of up to Rs 1,600 crore of optionally convertible debentures to ATC Telecom Infra. The special resolution to this effect was cleared at an Extra-ordinary General Meeting (EGM) of Vodafone Idea on Saturday.
According to the voting results, overall 99.99 percent 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 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 Vi 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.
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