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Investors breathed a huge sigh of relief after Vodafone Idea Limited and American Tower Corporation (ATC) agreed to extend the period of redemption of 8,000 Optionally Convertible Debentures (OCDs), the telecom major said in an exchange filing on August 28.
In February, Vodafone Idea’s shareholders approved a preferential issue to raise up to Rs 1,600 crore through Optionally Convertible Debentures through vendor ATC.
The timeline has been extended from six months from the date of allotment of the first tranche of OCDs to 18 months from the date of allotment.
August 28 was the due date for allotment of the first tranche of these 8,000 OCDs. The push in the timeline is subject to certain conditions as mutually agreed.
At 1:25 pm, Vodafone was trading at Rs 9, up 3.5 percent from the previous day’s close on the National Stock Exchange.
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Furthermore, the telecom major said that proceeds from the issue funds would be used to pay amounts owed to ATC India under the master lease agreements and the remaining amount shall be used for general corporate purposes.
In another development, the debt-ridden company announced its plans to clear about Rs 2,400 crore of dues to the government by September, PTI reported on August 22.
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