Debt-ridden telecom operator Vodafone Idea Ltd. (VIL) on Tuesday said that the company will seek a fresh nod from shareholders to raise Rs 1,600 crore from ATC Telecom Infrastructure, as the issuance of optionally convertible debentures (OCDs) has not been completed within the stipulated time since the last approval.
At the extraordinary general meeting (EGM) of the company, held on November 21, the shareholders of Vodafone Idea had approved issuing shares worth Rs 1,600 crore to ATC Telecom Infrastructure, the Indian arm of ATC, on a preferential basis to settle dues of the infrastructure vendor by converting the due amount into equity, if the amount remained unpaid in 18 months.
However, one of the conditions precedent to the preferential issue was conversion by the Government of India of interest from deferment of Adjusted Gross Revenue and Spectrum Dues owed by the company into equity shares of VIL. As the company has not received any communication from the Government of India on such a conversion, the issuance of OCDs to ATC has not been completed, within the validity period of the shareholders' resolution.
As per the existing norms, the issuance of OCDs should have been completed within 15 days from the date of the passing of the resolution by shareholders.
Vodafone Idea is the largest customer of ATC Telecom Infrastructure, the Indian arm of American Tower Company that provides mobile towers on lease. In the September quarter, VIL’s shortfall in payments to the ATC totaled nearly Rs 392 crore.
Shares of Vodafone Idea ended at Rs 8.10, down 0.61 percent.
