AgenciesIndus Towers’ board on Friday approved raising funds through issuance of non-convertible debentures (NCDs) of up to Rs 1,500 crore in multiple tranches on private placement basis.
“The board-constituted committee of directors for fund raising in its meeting held today, has, inter alia, approved the offering of NCDs of total up to Rs 1,500 crore (base issue size of Rs 1,000 crore and green shoe option of up to an additional Rs 500 crore) in three series, on private placement basis,” Indus said in a late Friday evening exchange filing.
At Indus’s second quarter earnings call last month, CFO Vikas Poddar had said that the company is raising funds via issuance of NCDs as it’s classified as a large corporate, and is accordingly, required to comply with a provision of raising a minimum 25% of its incremental long-term borrowing by way of debt securities. He had added that the money would be used for investment towards the company’s growth and funding capex needs.
Indus had recently made a provision of Rs 1,770.9 crore towards doubtful debt in the fiscal second quarter, a sharp 43% rise on-quarter, as the telecom infrastructure provider was yet to receive payment from cash-strapped (Vi), a key customer. Indus, in fact, has agreed to Vi’s request for softer payment terms.
The dues from Vi have hurt Indus’s second quarter net profit which plunged 44% on-year to Rs 872 crore. ET had earlier reported that Vi owes nearly Rs 7,000 crore to Indus.
Under the softer payment proposal, Vi will clear its dues outstanding as of December 31, 2022, between January and July 2023, and 100% of its dues from January 2023 onwards.
Indus shares closed 0.8% higher at Rs 203.25 on the BSE Friday.
“The board-constituted committee of directors for fund raising in its meeting held today, has, inter alia, approved the offering of NCDs of total up to Rs 1,500 crore (base issue size of Rs 1,000 crore and green shoe option of up to an additional Rs 500 crore) in three series, on private placement basis,” Indus said in a late Friday evening exchange filing.
At Indus’s second quarter earnings call last month, CFO Vikas Poddar had said that the company is raising funds via issuance of NCDs as it’s classified as a large corporate, and is accordingly, required to comply with a provision of raising a minimum 25% of its incremental long-term borrowing by way of debt securities. He had added that the money would be used for investment towards the company’s growth and funding capex needs.
Indus had recently made a provision of Rs 1,770.9 crore towards doubtful debt in the fiscal second quarter, a sharp 43% rise on-quarter, as the telecom infrastructure provider was yet to receive payment from cash-strapped (Vi), a key customer. Indus, in fact, has agreed to Vi’s request for softer payment terms.
The dues from Vi have hurt Indus’s second quarter net profit which plunged 44% on-year to Rs 872 crore. ET had earlier reported that Vi owes nearly Rs 7,000 crore to Indus.
Under the softer payment proposal, Vi will clear its dues outstanding as of December 31, 2022, between January and July 2023, and 100% of its dues from January 2023 onwards.
Indus shares closed 0.8% higher at Rs 203.25 on the BSE Friday.
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