Vodafone Idea on Tuesday comeback in the green after it announced the allotment of 12,000 optionally convertible debentures (OCDs) to American Tower Corp.
What Happened: The company on Saturday got the shareholder’s nod to issue a ₹1,600 crore OCD to American Tower Corp. The company on Monday informed that it has issued a total of 12,000 unsecured, unrated, and unlisted OCDs of the face value of ₹10 lakh to ATC amounting to a total of ₹1,200 crore.
The remaining “4,000 OCDs shall be allotted upon receipt of the application form and subscription money” the company informed in a regulatory filing. The move is supposed to bring some relief to the deb-ridden telco.
Now if the Boston-headquartered tower company proceeds to convert all the 16,000 OCDs into equity share that will translate to a 3.12% stake in the telecom operator. The conversion will dilute the promoters’ shareholding to 48.76% – 31.27% by Vodafone Group and 17.49% by Aditya Birla Group, with the government’s stake coming down to 32.09%.
Price Action: Vodafone shares galloped 1.05% to ₹6.75% at market open on Tuesday.
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