British telecom massive Vodafone is learned to have applied to govt for raising its stake in its Indian arm to 100 percent at an estimated USD 2.7 billion (Rs.16,600 crore). Trade sources mentioned Monday Vodafone had utilized the overseas investment Permission Board (FIPB) to lift its stake in Vodafone India from seventy-four p.c to one hundred pc.
While Vodafone didn’t right away revert again emails despatched for feedback, Vodafone India spokesperson Rohit Adya remained unreachable. Vodafone has raised its stake to 74 p.c in Vodafone Essar Ltd (VEL) using buying shares of Essar in the company in 2011. The British main sold Essar’s 33 % stake in VEL for USD 5. forty-six billion in July 2011.
After buying Essar’s 33 p.c, Vodafone’s stake in VEL was once going above the seventy-four percent FDI restrict accredited at that time. Vodafone transferred a 1.35 percent stake to an Indian investor to stay compliant with the prevailing sectoral FDI norms Page Design Web. Piramal Healthcare, in August 2011, sold 5.5 per stake in Vodafone India for approximately Rs. 2,900 crore. Consistent with sources, Piramal Healthcare now holds about an eleven percent stake in Vodafone India, and Max India’s founder Analjit Singh owns about 6 percent.
Vodafone has already started the train for fairness valuation to purchase out entire stake of its India partners, sources mentioned. In April 2013, Piramal crew Chairman Ajay Piramal had stated the corporate had invested in Vodafone with a 24-36 month Exit plan and would sell the stake either someday this year or the following.
The government in August licensed 100 percent foreign direct investment (FDI) in the telecom sector, meeting a key demand of the fund-starved trade. It was once decided to increase the FDI cap in telecom to 100 percent from seventy-four p.c.
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Vodafone India had registered a 24.5 percent jump in operating revenue to Rs. 10,640.6 crore for the monetary 12 months ended March 31, 2013. The revenues of the company jumped 10.2 percent to Rs. 35,885.eight crore for 2012-13 fiscal, as in opposition to Rs. 32,564.3 crore in the earlier financial yr.
The corporate has invested over Rs—fifty-four 000 crore due from 2007 until the finish of March 2013. Vodafone India had over 15.5 crores, mobile buyers within us through the end of June 2013. The British telecom major is facing a tax liability of over Rs. Eleven,200 crores, along with interest, on its 2007 acquisition of Hutchison Whampoa’s stake in Hutchison Essar. Last month, Verizon Communications agreed to pay USD a hundred thirty billion to buy Vodafone Group out of its US wireless business.