ATC opts to convert Rs 1,440 crore Voda Idea debt bonds into equity

Vodafone Idea (Vi) will issue equity shares worth Rs 1,440 crore to ATC Telecom Infrastructure Pvt Ltd (ATC TIPL), the Indian arm of American Tower Corporation, Vi said on Tuesday.

On March 18, ATC TIPL requested the 14,400 optionally convertible debentures (OCDs) held by it be converted into 1,440 million shares at a face value of Rs 10 each, the telecom operator said in an exchange filing. The move will marginally reduce Vi’s debt burden.

In February last year, loss-making Vi had allotted OCDs worth Rs 1,600 crore to ATC TIPL against the dues to the latter. The proceeds were being used by Vi to clear its dues to the US tower company, estimated at more than Rs 2,000 crore.