Vodafone talks up long-running Indian IPO plans

Vodafone talks up long-running Indian IPO plans

14 OCT 2015

Vittorio Colao, Vodafone CEO, said the company is preparing an initial public offering of its Indian unit, without laying out a timeline.

Colao told a local TV channel that he is “positively inclined to an IPO” but no final call on timing had been taken because of market volatility. His comments were picked up by Reuters.

The company has been mulling an IPO in India, where it is the second largest operator, for years but had been held back by a long-running tax dispute with the Indian government.

However, earlier this week, the Bombay High Court ruled in favour of Vodafone in the INR85 billion ($1.31 billion) dispute, which relates to the company’s acquisition in 2007 of Hutchison-Essar, which was later renamed Vodafone India.

A few months ago, it was reported that Vodafone had appointed investment bank NM Rothschild to work on the proposed offering, with the aim of raising $4 billion.

The timeline reported then was to finish the paperwork for the offering by the end of 2015/16 financial year. The report did not give an idea of how big a stake might be offered by Vodafone, or where the stock might be floated.

According to GSMA Intelligence, Vodafone is the second largest operator in India with 188 million mobile connections (end Q3 2015 figures), behind market leader Bharti Airtel with 232 million mobile connections.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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