Indus Towers board to raise Rs 1,500 crore through issue of NCDs

The board of directors of Indus Towers at the meeting held on Wednesday approved raising funds up to Rs 1,500 crore through the allotment of non-convertible debentures (NCDs).

The company’s Committee of Directors approved the allotment of 15,000 rated, listed, unsecured, redeemable NCDs of Rs 10 lakh each in three tranches.

A total of 15,000 NCDs will be issued in three series on a private placement basis, with 7,500 debentures issued in Series-I, amounting to Rs 750 crore, and 3,750 debentures in the second tranche, amounting to Rs 375 crore. The remaining 3,750 debentures will be issued in the final tranche, amounting to Rs 375 crore.

The tenure of the NCD for the first series would be 24 months, spanning from December 7, 2022, to December 7, 2024, and 30 months as well as 36 months, respectively, for the second and third series.

The coupon rate has been fixed at 8.2 percent per annum payable per year as well as on the maturity day, in addition to the principal amount.

Last month, India’s largest mobile tower installation company announced that it increased its provisions for ‘dubious debt’ while releasing its earnings number for the September quarter. The company made a provision of Rs 1,770 crore in the September quarter against receivables from Vodafone Idea, adding to the Rs 1,232 crore it had already provided in the June quarter.

Shares of Indus Towers closed 1.08 percent lower at Rs 196.25, on BSE. CNBCTV18