Vodafone Idea and ATC are in discussions to extend the OCD issue of Rs. 1,600 billion

Following the expiration of shareholder approval for the issuance, Vodafone Idea has started talks with American Tower Corp to prolong the preferential issue of optionally convertible debentures to the tower provider.

The government was supposed to convert interest from deferred adjusted gross revenue and spectrum dues of Rs16,000 crore owing by the company into equity shares, but that conversion has not yet happened, according to the No. 2 carrier, who informed exchanges on 6th December, 2022.

"The conversion of interest from the postponement of AGR and spectrum dues owing by the company into equity shares by the Government of India was one of the prerequisites for the preferential issuance. The issuing of OCDs to ATC has not been completed within the time frame specified in the shareholders' resolution since the firm has not received any information from the Government of India regarding such conversion (15 days from the date of passing of the resolution). As a result, the shareholders' resolution has expired, according to Vodafone Idea's notification to the BSE.

The statement said, "The firm is in discussions with ATC for an extension of the agreement and will seek new shareholder approval as necessary." The loss-making carrier made the decision to sell ATC Telecom Infrastructure convertible bonds worth Rs. 1,600 crore, which it will use to settle some outstanding debts owed to the tower operator for the use of its facilities to provide mobile phone services in India.

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