Vodafone Thought has acquired board of administrators approval for issuing Indian rupee-denominated debentures to ATC Telecom Infrastructure aggregating to ₹1,600 crore. The debentures can be issued in a number of tranches on a preferential foundation. The funds raised can be used to pay ATC quantities owed to ATC by Vodafone Thought underneath the grasp lease agreements and common company functions.
In keeping with the regulatory submitting, Vodafone Thought will concern as much as 16,000 Indian Rupees denominated optionally convertible, unsecured, unrated, and unlisted debentures having a face worth of ₹10 lakh every, in a number of tranches, aggregating as much as ₹1,600 crore.
These debentures will carry a coupon fee of 11.2% every year and they are going to be payable semi-annually throughout its tenure which is a most of 18 months from the date of issuance and allotment of the primary tranche. The kind of issuance can be on a preferential foundation.
The debentures can be convertible into fairness shares at a conversion value of ₹10 per share to ATC Telecom Infrastructure (ATC) on a preferential foundation.
Notably, the problem value can be at par of ₹10 lakh per debenture every convertible into 1 lakh fairness shares of the corporate at a conversion value of ₹10 per share.
ATC is a non-promoter of the corporate.
In its submitting, Vodafone Thought mentioned, “The funds so raised shall be used to pay ATC quantities owed to ATC by the Firm underneath the grasp lease agreements and, to the extent of any the rest, for common company functions of the Firm.”
It added that the preferential concern can be topic to sure situations precedent, together with inter alia the approval of the shareholders of the corporate and the federal government having transformed the curiosity from deferment of adjusted gross income and spectrum dues owed by the corporate.
Additionally, Vodafone Thought board has authorized the convening of a rare common assembly of the corporate on November twenty first to hunt approval of shareholders for the aforesaid Preferential Challenge.
On Thursday, market regulator Sebi reportedly authorized the federal government’s proposal to transform dues of over $1.92 billion by telecom operator Vodafone Thought to equities.
On BSE, Vodafone Thought shares closed at ₹8.72 per share up by 1.75%. The corporate’s market cap is round ₹28,007.64 crore.
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