Vi Ocds News Today

Last month, Boston-based ATC had informed the US Securities and Exchange Commission (SEC) that Vis OCDs would mature in two tranches of Rs 800 crore each on August 27, 2023 and August 27, 2024. That has now changed.

Vodafone Idea (Vi) has extended the redemption period of 8,000 optionally convertible debentures (OCDs) – out of the 16,000 OCDs issued to American Tower Corps India unit (ATC Telecom Infrastructure Pvt Ltd) – to 18 months from the allotment date, instead of the earlier six-month deadline.

Vodafone Idea: The move is a relief for Vi, which is yet to tie up its much needed funding needed to pay vendors, the government, expand its 4G coverage and also invest in its pending 5G rollout.

ATC India: The two sides have entered into a 60-day exclusivity agreement for bilateral negotiations that could end in ATC selling a minimum of 51% in its India unit, ATC Telecom Infrastructure Pvt Ltd (ATC-TIPL), to cashing out entirely at an enterprise value of around $1.5-2.0 billion, the people said. I Squared has been competing with Canada’s Brookfield and US infrastructure fund Stonepeak Partners for the stake.

The two sides have entered into a 60-day exclusivity agreement for bilateral negotiations that could end in ATC selling a minimum of 51% in its India unit, ATC Telecom Infrastructure Pvt Ltd (ATC-TIPL), to cashing out entirely at an enterprise value of around $1.5-2.0 billion, the people said. I Squared has been competing with Canadas Brookfield and US infrastructure fund Stonepeak Partners for the stake.

“Basis Vis disclosures, it faces large payouts in 2QFY24...of the estimated Rs 4,300 crore outgo, Rs 2,600 crore is towards debt repayments (maturing) and a Rs 1,700 crore instalment related to 5G spectrum, which may exert pressure on payments to Indus, unless Vi raises funds,” IIFL Securities said in a note.

Vodafone Idea: “Basis Vi’s disclosures, it faces large payouts in 2QFY24...of the estimated Rs 4,300 crore outgo, Rs 2,600 crore is towards debt repayments (maturing) and a Rs 1,700 crore instalment related to 5G spectrum, which may exert pressure on payments to Indus, unless Vi raises funds,” IIFL Securities said in a note.

Accordingly, IIFL has cautioned that Indus receipts from Vi could fall short unless there is significant fundraising at the telecom operator. On Monday, shares of Indus closed 1.12% lower at ₹172.05 on BSE, while Vi ended 0.12% higher at ₹8.34. At its fiscal first-quarter earnings call last week, Indus top management said the tower company was in constant dialogue with Vi, urging the key customer to clear its past dues estimated at ₹9,500 crore.

Vodafone Idea: “During the three and six months ended June 30, 2023, the company recognised unrealised gains of $28.8 million and $13.1 million, respectively, for the Vi OCDs held as of June 30, 2023,” ATC said in a filing to the US Securities and Exchange Commission (SEC) on July 27.

In late February, loss-making Vi had allotted OCDs worth ₹1,600 crore to ATCs wholly owned India unit, ATC Telecom Infrastructure (ATC TIPL). The proceeds are being used by Vi to clear its dues to the US tower company. Vi owes ATC an estimated ₹2,000 crore.