ATC India to Convert OCDs Issued by Vodafone Idea into Equity Shares

Reported by Yashika Goel March 20th, 2024 at 08:54 am

VIL will take necessary actions to allot the equity shares to ATC pursuant to the conversion of the said OCDs, as per the terms of the OCDs, Vodafone Idea said in an exchange filing Tuesday evening.

Highlights

VIL converts OCDs into equity shares in response to ATC's request.
Conversion results in issuance of 144 crore fully paid-up equity shares worth Rs 14.4 billion.
ATC's shareholding expected to increase to around 2.9 percent post-conversion.

ATC India to Convert OCDs Issued by Vodafone Idea into Equity Shares
Vodafone Idea Limited (VIL) has announced the conversion of Optionally Convertible Debentures (OCDs) into equity shares, following a request from ATC Telecom Infrastructure Private Limited (ATC). The conversion, valued at Rs 14.4 billion (Rs 1,440 crore), will result in the issuance of 144 crore fully paid-up equity shares with a face value of Rs 10 each, Vodafone Idea said on Tuesday. Reportedly, ATC will hold around 2.9 percent of the revised shareholding after the conversion.

Also Read: ATC Takes USD 322 Million Goodwill Impairment Charge for India Unit

"As per the terms of the OCDs, on March 18, 2024 ATC has requested VIL for conversion of 14,400 OCDs amounting to Rs 14.4 billion into 144,00,00,000 (One Hundred and Forty-Four Crore) fully paid-up equity shares of face value of Rs 10 each. VIL will take necessary actions to allot the equity shares to ATC pursuant to the conversion of the said OCDs, as per the terms of the OCDs," Vodafone Idea said in an exchange filing Tuesday evening.

Also Read: Vodafone Idea and ATC Agree to Extend 1st Tranche of OCD Redemption to 18 Months

In its press release, Vodafone Idea didn't specify the stake that ATC would hold post-conversion. Initially issued in February 2023 for a total of Rs 16 billion (Rs 1,600 crore), the OCDs were extended by 12 months in August 2023, covering the first tranche worth Rs 8 billion (Rs 800 crore).

ATC, a key infrastructure service provider for VIL, subscribed to the OCDs, and the funds raised from the OCD issuance were primarily utilised to settle outstanding dues owed to ATC. The conversion price of Rs 10 per share, set at the time of issuance, represented a premium over VIL's prevailing market price.

Also Read: Brookfield’s DIT to Acquire ATC India in USD 2 Billion Deal

As reported by TelecomTalk, in January 2024, Data Infrastructure Trust (DIT), an Infrastructure Investment Trust affiliated with Brookfield Asset Management, has inked an agreement to acquire a 100 percent equity stake in American Tower Corporation's Indian operations (ATC India). DIT currently houses Brookfield's telecom tower businesses in India through Summit Digitel and Crest Digitel.