The telecommunication giant of Britain, Vodafone Group has planned to come up with an IPO (Initial Public Offer) for its Indian business vertical. Vittorio Colao, CEO, Vodafone in his visit to India last month, expressed interest for IPO, while interacting with local media.
Colao during its interaction said “I cannot give you a exact date of issue being marketed, but can assure that company is positive for the IPO launch and have also begun with preparatory work.” He further added that “We have not made a final decision, as there are several factors which may influence IPO, but one way or the other we are positive.”
The prospective IPO will be for a non-controlling share of business. Apart from this group has delayed the listing, due to regulatory and tax issues in India during May this year. The Group has also asked for Bank Investment from Rothschild, urging them to prepare reports listing out benefits from proposed IPO.
The Indian vertical of the Group has more than 180 million customers, which contributes nearly 10% revenue of the Group. In January this year, Vodafone Group has said that, it has invested more than £12.8 billion in India since 2007, whereas in 2013 has committed to invest Rs85 billion annually. The company during March 2015, acquired spectrum in about Rs260 billion as a part of planning to expand 3G services from 9 to 16 circles.
The past reports says that Vodafone Group’s CEO Colao will visit India seeking favorable decision on Vodafone India’s Rs85 Billion transfer case pending with Bombay High Court. Colao were also expected to address the Vodafone tax dispute case worth Rs200 billion, which is pending from past many years.
However, Vittorio Colao admitted that company will go ahead in listing, even with pending tax case.
