Vodafone Idea Limited (VIL), the third-largest telecom operator in the country, has received communication from the American Tower Company (ATC) to convert the remaining 1600 OCDs (optionally convertible debentures) into equity shares. The telecom company had earlier issued 16,000 OCDs to ATC against the amount it owed to the telecom infra company. 14,400 of these were already converted into equity. Now VIL has received the request to convert the remaining OCDs as well.
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In a submission at the stock exchanges, VIL said, "We wish to inform you that pursuant to the terms of OCDs, the Company has received Conversion
Notice in respect of outstanding 1,600 OCDs from current OCD holders for conversion into 16,00,00,000 fully paid up equity shares of face value of Rs. 10/- each at conversion price of Rs. 10/- per equity share."
Vodafone Idea also notified the exchanges about the approval from the shareholders of the company to allot preferential equity to vendors Nokia and Ericsson. Shares worth Rs 1,520 crore will be allotted to Nokia and Rs 983 crore worth of shares will be allotted to Ericsson. The is to reduce the debt of Vodafone Idea against the vendors.
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VIL is looking to raise more funds from vendors, along with raising money via debt from the lenders. The telco has previously said that it will look to raise Rs 25,000 crore in debt from the lenders. The money raised will be used for capex to rollout 4G in more places, expand coverage and increase capacity. At the same time, VIL is looking to launch 5G in India by the end of calendar year 2024. This is expected to help the telecom operator in adding new customers and reduce subscriber churn in the future.
