Vodafone Idea's shareholders again gave their nod to the preferential issuance to raise up to Rs 1,600 crore worth optionally convertible debentures through vendor American Tower Corp (ATC), the telecom operator said in a regulatory filing on February 25.

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"The following items of business as set out in the notice dated January 31, 2023, were transacted at the EGM... issue of securities on a preferential basis," the company said in a BSE filing, following the Extraordinary General Meeting (EGM) on Saturday.

Optionally convertible debentures are debt securities that allow an issuer to raise capital and in return the issuer pays interest to the investor till the maturity.

Vodafone Idea said that according to the voting results, overall 99.99 percent of the votes were in favour of the resolution pertaining to the issue of optionally convertible debentures of up to Rs 1,600 crore to American Tower Corp.

The telco had earlier said that the proceeds from the issue funds would be used to pay amounts owed to ATC India under the master lease agreements and the remaining amount shall be used for general corporate purposes.

The board of Vodafone Idea had in January given approval for the allotment of Optionally convertible, unsecured, unrated and unlisted debentures worth Rs 1,600 crore to ATC Telecom Infrastructure Pvt. Ltd.

This the second such issue as Vi's board had first approved the preferential issue of OCDs to ATC Telecom Infrastructure at an EGM on November 21, 2022

In November 2022 too, at the EGM of the company, the shareholders of Vodafone Idea had approved the issuing of shares worth Rs 1,600 crore to ATC Telecom Infrastructure, the Indian arm of ATC, on a preferential basis to settle dues of the infrastructure vendor by converting the due amount into equity, if the amount remained unpaid in 18 months.