Vodafone Idea Converts ATC India’s Optionally Convertible Debentures into Equity – What’s Next for Vi Share Price?

Vodafone Idea (Vi) has turned all the optionally convertible debentures (OCDs) it issued to the India unit of American Tower Corp (ATC) into fully paid equity shares.

Conversion Details

ATC had requested Vi to convert the remaining 1,600 OCDs—out of the 16,000 initially issued—into 160 million fully paid equity shares. Following this request, Vi’s capital raising committee allotted 160 million equity shares of Rs 10 each to current OCD holders on July 12, 2024. This means all outstanding OCDs are now converted into equity shares.

ATC’s Stake in Vi

After this conversion, ATC India is expected to hold around 0.2% in Vodafone Idea. The company’s paid-up share capital has increased to Rs 680,388,837,720, which is made up of 68,038,883,772 equity shares valued at Rs 10 each.

Background

In February 2023, Vodafone Idea had allotted OCDs worth Rs 1,600 crore to ATC Telecom Infrastructure to settle its dues. At that time, Vi owed ATC about Rs 2,000 crore. In March 2024, ATC India initially converted 14,400 OCDs into 1.44 billion fully paid equity shares, which gave them about a 2.9% stake. This stake was sold by ATC India at an average price of Rs 12.78 per share.

Stock Performance

On the day of the announcement, Vodafone Idea shares closed 2.9% lower at Rs 16.08 on the BSE.