British telecom massive Vodafone is learnt 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 has utilized to overseas investment Permission Board (FIPB) for permission 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) by means of 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 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 the Vodafone India for approximately Rs. 2,900 crore.
consistent with sources, Piramal Healthcare now holds about 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 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 FDI cap in telecom to 100 percent from seventy four p.c.
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Vodafone India had registered 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 to the fact 2007 until finish of March 2013. Vodafone India had over 15.5 crore mobile buyers within the us of a through end of June 2013.
The British telecom major is facing a tax liability of over Rs. eleven,200 crore, 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.