Vodafone Idea To Raise Rs 1,600 Crore From ATC

The country's leading telecom company Vodafone Idea will raise Rs 1600 crore from ATC. The approval for this has also been obtained from the Board of Directors of the company. The board of directors of loss-making telecom company Vodafone Idea Limited (VIL) has taken a big decision on Friday. The company approved a proposal to raise up to Rs 1,600 crore from mobile tower company ATC. VIL gave this information to the stock exchanges. 

The company said that this amount will be raised through debt bonds convertible into equity. Giving information on behalf of the company, it has been told that the Board of Directors of Vodafone Idea Limited in its meeting on Thursday approved raising up to Rs 16,000 by issuing Optionally Convertible, Unsecured, Unrated, and Unlisted Debentures (OCDs). The face value of each debenture is 10 lakhs. These bonds will be issued to ATC Telecom Infrastructure Pvt Ltd in one or more installments. They can also be converted into equity shares. The interest rate for OCD is 11.2%. This amount will be payable every six months.

Following reports that the tower provider may revoke services if its dues were not paid, Vodafone Idea requested softer payment terms from Indus Towers, including more time and partial payment of its unpaid balance.

Industry experts stated that the decision to pay ATC will give breathing room to the loss-making telecom service provider, which has debts totaling more than 1.9 trillion rupees and is unable to raise 20,000 crores through equity or debt from outside investors.