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Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
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.
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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.
