Vodafone Idea Converts Rs 160 Crore Debentures to Equity Amidst Debt Woes

ATC Telecom Infrastructure has converted Rs 160 crore worth of optionally convertible debentures from Vodafone Idea into equity. Vodafone Idea issued these debentures as part of its rental payments for mobile towers. The company has a total debt of Rs 2,07,630 crore as of March 31, 2024.

In a significant financial maneuver, ATC Telecom Infrastructure has converted Rs 160 crore worth of optionally convertible debentures (OCDs) from Vodafone Idea (VIL) into equity, according to a regulatory filing on Thursday.

The debt-laden telecom operator had issued Rs 1,600 crore worth of OCDs to ATC in lieu of rental payments for mobile towers as it struggled to clear its dues. Previously, ATC had already converted Rs 1,440 crore worth of these debentures into equity in March.

This move comes amidst Vodafone Idea's ongoing financial challenges, with the company reallocating shares worth Rs 2,458 crore to vendors Nokia India and Ericsson India last month to clear partial dues. As of March 31, 2024, VIL's total debt stands at a staggering Rs 2,07,630 crore. On the Bombay Stock Exchange, VIL's shares closed at Rs 16.56 apiece, marking a 0.48 per cent decline from the previous close.