Vi Shareholders Again Approve OCD Issuance worth Rs 1600 Crore to ATC

Post the issuance of OCDs to ATC, the promoters will hold 48.76% out of which 31.27% is held by the Vodafone Group UK, and the remaining 17.49% is with the Aditya Birla Group (ABG). The government's shareholding in the telco would come down to 32.09% (still the largest stakeholder in the company). ATC would be holding 3.18% in Vi, assuming full conversion of the OCDs issued. 

Highlights

  • In an EGM of Vi, the shareholders have approved the approval of Rs 1600 crore worth of OCDs to the American Tower Company (ATC).
  • Post the issuance of OCDs to ATC, the promoters will hold 48.76%.
  • This would reduce some pressure on the operations of Vi in the short term.

Follow Us

Vodafone Idea

In an Extraordinary General Meeting (EGM) of Vodafone Idea (Vi), the third-largest telecom company in India, the shareholders have approved the approval of Rs 1600 crore worth of optionally convertible debentures (OCDs) to the American Tower Company (ATC). This is not the first time the shareholders have approved the move. Vi couldn't go ahead with the same earlier because one of the conditions for the OCD issue to ATC was the execution of conversion of government dues to equity in the telco. Since it has happened now, ATC would be receiving the OCDs.




Post the issuance of OCDs to ATC, the promoters will hold 48.76%, out of which 31.27% is held by the Vodafone Group UK, and the remaining 17.49% is with the Aditya Birla Group (ABG). The government's shareholding in the telco would come down to 32.09% (still the largest stakeholder in the company). ATC would be holding 3.18% in Vi, assuming full conversion of the OCDs issued.

Read More - Vi Has Now been Losing Subscribers for 7 Quarters Straight

This would reduce some pressure on the operations of Vi in the short term. The telco is looking to raise funds post the conversion of dues to equity for the government. If the telco is able to raise funds successfully, it would be able to meet the upcoming dues payments as well as fuel the rollout of 5G. While ATC's dues are not going to be a problem anymore, Vi still has to make payments to tower companies such as Indus Towers, and then there are equipment makers such as Nokia.

Read More - Vi Might Have to Give More Equity to Govt in the Future

The promoters are reportedly thinking of giving the telco about Rs 5000 crore, but nothing's confirmed at the moment. The ABG had promised the government that it would be bringing the necessary investments in Vodafone Idea. According to the union telecom minister Ashwini Vaishnaw, this was what pushed the government to go ahead with the dues to equity conversion.

Reported By

Tanuja is a passionate technology and telecom buff who has been following the telecom industry for several years now.

Recent Comments

SCKPA :

Open network site malfunctioning for a long time of approx 2 years.

Airtel customers will now be able to see network coverage…

SCKPA :

I have used and currently using single sim of BSNL. Same issue. Without towers how can a operator cover most…

Jio, Airtel, and Vodafone Idea See Subscriber Losses, While BSNL…

Sujata :

This thing was supposed to be implemented from 1st October, 2024.

TRAI Directs Telecom Providers to Display Coverage Maps on Websites

rks :

Good Move. Will help. Today itself I came to my village in Bihar and there is one idea tower for…

TRAI Directs Telecom Providers to Display Coverage Maps on Websites

. :

Jio data consumption is 100 percent after watching tv for just 20 min but bsnl i can watch a full…

Jio, Airtel, and Vodafone Idea See Subscriber Losses, While BSNL…

Load More
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments