Vodafone Idea, ATC extend last date for subscription of Rs 1,600-crore OCDs to Feb 28

(Representative image: Reuters)

Vodafone Idea Ltd (VIL) and American Tower Corporation (ATC) have agreed to extend the last date for subscribing optionally convertible debentures (OCDs) in the telecom firm, worth Rs 1,600 crore, until February 28, 2023, a regulatory filing said on December 10.

"We wish to further inform that both the company and ATC have mutually extended the last date for subscription of the OCDs to 28th February, 2023 or such later date as may be mutually agreed," VIL informed the stock exchanges.

The subscription of OCDs would, however, remain subject to certain conditions, which include approval from VIL's shareholders and "conversion by the Government of India of interest from deferment of adjusted gross revenue (AGR) and spectrum dues owed by the company into equity shares", the regulatory filing noted.

Last month, shareholders of VIL had approved issuing shares worth Rs 1,600 crore to ATC Telecom Infrastructure -- 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.

The approval, however, lapsed in the absence of any response from the government on the conversion of interest dues into equity, VIL said in an exchange filing on December 6.

Notably, the government has given telecom operators an option of paying the interest for four years of deferment on the deferred spectrum instalments and AGR dues by way of conversion into equity of the NPV of such interest amount.

The debt-ridden VIL had opted for converting about Rs 16,000 crore of interest liability payable to the government into equity, which will amount to around 33 percent stake in the company while promoters' holding will come down to 50 percent from 74.99 percent.

During the September 2022 quarter, VIL, which is also ATC's largest customer in India, indicated that it would make a partial payment of its contractual amounts owed to the company under tenant leases for the remainder of 2022, including amounts owed for the three months ended September 30, 2022.

During the September quarter, the shortfall in payments from VIL totalled approximately USD 48 million (about Rs 392 crore).

With PTI inputs