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Business News/ Companies / News/  Vodafone Idea extends OCD redemption allotted to ATC by one year
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Vodafone Idea extends OCD redemption allotted to ATC by one year

Vodafone Idea on Monday, announced the extension of the redemption period of Optionally Convertible Debentures allotted to ATC by one yea

Vodafone Idea has announced the extension of allotment date of OCDs to ATC by six monthsPremium
Vodafone Idea has announced the extension of allotment date of OCDs to ATC by six months

Vodafone Idea announced the extension of the redemption period of its optionally convertible debentures (OCD), allotted to ATC, by one year. 

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In its BSE filing, VI said, “The Company and ATC have agreed to extend the period of redemption of 8000 OCDs from 6 months, from the date of allotment of first tranche of OCDs (which was falling due on 28th August, 2023), to 18 months from the date of allotment." VI had allotted OCDs of  the face value of 10,00,000 each to ATC Infrastructure private limited.

THe company shares were trading 1.84% lower at 8.53 per share on BSE at 10:24 am on Monday. With the announcement, the telecom firm has got more time to repay its debt to ATC.

Also Read: Vodafone Idea share price jumps over 9% on fundraising reports

Before the announcement, the six months period of repayment after the date of allotment of OCD was scheduled to end on 28 August.  Now, the date of end of the period is 28 August, 2024.

What is Optionally Convertible Debentures?

Optionally convertible debentures are debt securities which let issuer to raise capital. In return the issuer pays interest to the investor till the maturity. In this case, investors have the right to convert the debt into equities of the issuing company. The price of the equities is decided at the time of the issue.

Also Read: Vodafone Idea Q1 Results: Net loss widens 7% YoY to 7,840 crore

Earlier VI had announced that the proceeds from the issue funds would be utilised to pay the money owed to ATC India. The payment will be made under the master lease agreements and the remaining amount shall be used for general corporate purposes.

In February, the telecom operator had announced the allotment of 12000 OCDs of the face value of 10,00,000 to ATC Telecom Infrastructure Private Limited. The company had said that the capital raising committee of the board of directors had alloted a total of 12,000 number of unsecured, unrated and unlisted optionally convertible debentures of 10,00,000 each, i.e., of 1,200 crore to ATC Telecom.

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Published: 28 Aug 2023, 09:20 AM IST
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