ATC India pushes Vodafone Idea to convert remaining 1,600 OCDs into 0.2% stake
In February 2023, Vi had allotted OCDs worth Rs 1,600 crore to ATC Telecom Infrastructure Pvt Ltd against its dues. Vi was then estimated to owe ATC around Rs 2,000 crore. Vi shares had earlier closed around 0.5% lower at Rs 16.56 on the BSE on Thursday. According to company insiders, ATC India will likely hold around 0.2% in Vi, post-conversion.
Kolkata: The India unit of (ATC) has called on (Vi) to convert the remaining Rs 1,600 crore worth () – out of the Rs 16,000 originally issued to it by the telco — into 16 crore fully-paid equity shares, or a tiny 0.2% stake.Vi, the telecom JV between UK’s Vodafone Group Plc and India’s Aditya Birla Group, on Thursday said it’s taking suitable steps to make the allotment to the US tower company that recently sold its Indian towers business to Canada’s Brookfield.
“…the company has received a Conversion Notice in respect of outstanding 1,600 OCDs from current OCD holders for conversion into 16 crore fully paid up equity shares of face value of Rs 10 each at conversion price of Rs 10 per share. The company will be taking necessary action to allot the equity shares to the OCD holders against the conversion of the said OCDs,” Vi said in a late Thursday evening exchange filing.
Vi shares had earlier closed around 0.5% lower at Rs 16.56 on the BSE on Thursday. According to company insiders, ATC India will likely hold around 0.2% in Vi, post-conversion.
In February 2023, Vi had allotted OCDs worth Rs 1,600 crore to ATC Telecom Infrastructure Pvt Ltd against its dues. Vi was then estimated to owe ATC around Rs 2,000 crore.
In March 2024, ATC India initially called on Vi to convert 14,400 OCDs into 144 crore fully-paid equity shares, or around a 2.9% stake. This stake was reportedly sold by ATC India at an average price of Rs 12.78 apiece.
In January 2024, Canada’s Brookfield acquired ATC’s India unit in a $2.5-billion (about Rs 21,000 crore) all-cash deal likely to close in the second half of 2024. ATC, though, had then said it would retain the full economic benefit associated with the OCDs issued to it by Vi, and would be entitled to receive future payments relating to existing ATC India receivables.
Neither Vi nor ATC replied to ET’s queries on ATC TIPL’s likely stake in Vi, post-conversion.
The latest developments come on the heels of Vi recently raising around Rs 23,000 crore via the equity route. The telco is looking to raise another Rs 23,000 crore of debt via long-term loans from a SBI-led banking consortium and another Rs 10,000 crore in bank guarantees.
Vi is targeting around Rs 55,000 crore capex over the next three years towards 4G expansion and 5G rollouts in its priority markets. This is vital for Vi to arrest customer losses and compete more effectively with Reliance Jio and , who have already rolled out pan-India 5G networks.
Source: Stocks-Markets-Economic Times
