Vodafone Idea Ltd and American Tower Corp. (ATC) has extended the redemption period of 8,000 optionally convertible debentures (OCDs) from six months to 18 months, the Aditya Birla Group-backed telco informed the BSE on Monday.
The initial tranche of these debentures was scheduled for redemption on 28 August, the company added. Vodafone Idea had sanctioned a plan to raise ₹1,600 crore by issuing OCDs through ATC via a preferential issue to address pending obligations arising from the lease of its towers for facilitating mobile phone services across India.
The third-largest telecom operator had secured funds from ATC, and intends to utilize these funds to settle some of its outstanding dues owed to the tower provider. Completion of the transaction is, however, contingent upon certain conditions, including obtaining shareholder approval and the government’s conversion of interests from the deferred adjusted gross revenue and spectrum dues into equity.
According to people in the know, Vi has outstanding dues of over ₹3,000 crore to be paid to ATC and a larger amount to Indus Towers.
In its earnings call Vi said that it will begin to pay its vendors from October.
PTI reported that the carrier planned to clear about ₹2,400 crore in dues to the Centre by September. The company has also settled pending dues on license fee and spectrum usage charges of around ₹450 crore for the January-March period.
Vodafone Idea has to pay up ₹1,680 crore as the first instalment for the spectrum it purchased in auctions last year, for which it has sought a 30 days grace period.
Vodafone Idea’s stock rose to ₹8.99 on Monday, up 3.45% on reports that it was close to securing funding from potential investors.
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Updated: 29 Aug 2023, 12:05 AM IST
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