The Indus Board successfully completes an Rs. 1500 billion NCD offering
- ByStartupStory | November 26, 2022
The board of Indus Towers approved raising money on Friday by issuing non-convertible debentures (NCDs) in various tranches of up to Rs 1,500 crore on a 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.
Indus is raising capital through the issuance of NCDs, according to CFO Vikas Poddar, who stated this during the company’s second quarter earnings call last month. As a large corporate, Indus is required to raise a minimum of 25% of any additional long-term borrowing through the sale of debt securities. He had also said that the funds will be used in the expansion of the business and utilised to pay for capital expenditures.
As the provider of telecom infrastructure was still waiting for payment from cash-strapped Vodafone Idea (Vi), a crucial client, Indus recently made a provision of Rs 1,770.9 crore towards doubtful debt in the fiscal second quarter, a dramatic 43% increase on-quarter. In truth, Indus has granted Vi’s request for more lenient payment terms. Due to Vi, Indus’ second quarter net profit fell 44% year over year to Rs 872 crore. Vi owes Indus up to 7,000 crore rupees, according to an earlier report by ET. In accordance with the gentler payment arrangement, Vi will pay off any outstanding debt as of December 31, 2022, all outstanding debt between January and July of 2023, and all outstanding debt as of January of 2023.
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