Vodafone set to go solo in India
Vodafone Set To Go Solo In India. British telecom giant Vodafone is learnt to have applied to government for raising its stake in its Indian arm to...
New Delhi: British telecom giant Vodafone is learnt to have applied to government for raising its stake in its Indian arm to 100 per cent at an estimated $2.7 billion (Rs 16,600 crore).
Industry sources said today Vodafone has applied to Foreign Investment Permission Board (FIPB) for permission to raise its stake in Vodafone India from 74 per cent to 100 per cent. While Vodafone did not immediately revert back emails sent for comments, Vodafone India spokesperson Rohit Adya remained unreachable.
Vodafone has raised its stake to 74 per cent in Vodafone Essar Ltd (VEL) by buying shares of Essar in the company in 2011. The British major bought Essar’s 33 per cent stake in VEL for $5.46 billion in July, 2011.
After buying Essar’s 33 per cent, Vodafone’s stake in VEL was going above the 74 per cent FDI limit permitted at that time. Vodafone transferred 1.35 per cent stake to an Indian investor to remain compliant with the existing sectoral FDI norms.
Piramal Healthcare in August, 2011 bought 5.5 per stake in the Vodafone India for about Rs 2,900 crore. According to sources, Piramal Healthcare now holds about 11 per cent stake.