The decision by Vodafone Idea Ltd., and ATC to extend the redemption term for 8,000 Optionally Convertible Debentures (OCDs) has drawn attention to the company's stock.

The time frame has been increased from six months to 18 months from the date the first tranche of OCDs were distributed.

The deadline for allocating the first tranche of these 8,000 OCDs was Monday, August 28. There are some conditions that must be met, as both parties have agreed.

The preferred issuance to raise up to Rs 1,600 crore through Optionally Convertible Debentures through vendor American Tower Corp (ATC) had been approved by Vodafone Idea's shareholders.

Debt securities known as optionally convertible debentures allow an issuer to raise money and in exchange, pays the investor interest till maturity.

The telecom had previously stated that the profits from the issue funds will be used to reimburse ATC India for any sums outstanding under the master leasing agreements and that the remaining money would be used for general corporate reasons.

The optionally convertible, unsecured, unrated, and unlisted debentures worth Rs 1,600 crore were allocated to ATC Telecom Infrastructure Pvt. Ltd. with board approval in January.

The stock of Vodafone Idea ended the day on Friday about 10% higher, marking its biggest single-day gain in almost two months. The telecom operator had gained for the fourth day in a row.

The company's management stated in its earnings call last week that its equity fund raising exercise will end in the December quarter and that debt funding will come after.

According to the management, negotiations about money raising have picked up momentum during the past one to two months.

Additionally, it anticipates a considerable reduction in the payout burden following the September quarter's bundled spectrum payments and debt repayments.