’s board on Friday approved issuing Indian Rupee denominated optionally convertible, unsecured, unrated and unlisted debentures to ATC Telecom Infrastructure Pvt. Ltd. (ATC) to raise Rs 1,600 crore, and will use the fund to repay the dues of the US tower company.
The cash-strapped telco will issue the debentures “having a face value of Rs. 10,00,000 each, in one or more tranches, aggregating up to Rs 1600 crores, convertible into equity shares at a conversion price of Rs. 10/- per equity share,” Vodafone Idea said in a notice to stock exchanges late Friday.
“The funds so raised shall be used to pay ATC amounts owed to ATC by the company under the master lease agreements and, to the extent of any remainder, for general corporate purposes of the company,” the carrier said.
Vodafone Idea shares closed Friday at Rs8.72, up 1.8%, on the BSE Friday.