Indus Towers accepts Vodafone Idea's payment plan for its dues

Indus Towers on Friday said that they have accepted Vodafone Idea’s (Vi) payment plan for its dues while not opting for the telco’s proposal of optionally convertible debentures (OCDs).

Vi had earlier submitted a payment plan which has been approved by the tower company’s board. “We have not considered the option of convertible debentures. We want to see the payment plan materializing,” the company’s Chief Financial Officer Vikas Poddar said.

Last Friday, Vi’s board decided to issue OCDs worth Rs 1,600 crore to American Tower Corporation. The funds raised will be used to clear dues of the tower company.

Indus Towers, which is reported to have payments of over Rs 7,000 crore from Vi, did not consider a similar proposal. Instead, the company’s board has agreed to the telco's proposal of substantially paying its billed amount till December. Vi has agreed to pay 100 per cent of the billed amount and outstanding amounts between January-July 2023.

Last month, Indus Towers issued a warning to Vi to pay up its dues by November or face disconnection of towers.  In response to an analyst query, the tower company’s management however said this was a speculation and no towers were being disconnected.

Indus Towers posted a net profit of Rs 872 crore in the second quarter of the fiscal year (FY2023) on a revenue of Rs 7,967 crore.