In Short:
Vodafone Idea (Vi) converted all OCDs to equity shares issued to American Tower Corp (ATC) in India. ATC asked Vi to convert remaining 1,600 OCDs into 160 million equity shares. Vi allotted 160 million equity shares at Rs 10 each to current OCD holders. ATC India likely to hold 0.2% stake in Vi post-conversion. Vi shares closed 2.9% lower at Rs 16.08 on Friday.
Vodafone Idea Converts all Optionally Convertible Debentures Issued to ATC India into Equity Shares
Vodafone Idea (Vi) has converted all the optionally convertible debentures (OCDs) issued to the India unit of American Tower Corp (ATC) into fully paid equity shares. This conversion comes after ATC called on Vi to convert the remaining 1,600 OCDs originally issued to it into 160 million fully-paid equity shares.
Conversion Details
In a BSE filing on July 12, 2024, Vi stated that it has allotted 160 million equity shares of face value Rs10 each at an issue price of Rs 10 per equity share to current OCD holders. Post this conversion, all outstanding OCDs have been converted into equity shares. ATC India is expected to hold around 0.2% stake in Vi post-conversion.
Financial Impact
The paid-up share capital of Vi now stands at Rs 680,388,837,720, comprising of 68,038,883,772 equity shares of face value Rs 10 each. In February 2023, Vi had allotted OCDs worth Rs 1,600 crore to ATC Telecom Infrastructure against its dues. Vi’s total dues to ATC were estimated to be around Rs 2,000 crore.
Previous Conversion and Stake Sale
In March 2024, ATC India had initially called on Vi to convert 14,400 OCDs into 1.44 billion fully paid equity shares, equivalent to a 2.9% stake. This stake was reportedly sold by ATC India at an average price of Rs 12.78 per share. Vi’s shares closed 2.9% lower at Rs 16.08 on the BSE on Friday.
