Vodafone Essar : Planning an IPO soon

by khalid on 21/07/2010 · 0 comments

Essar India is considering the possibility of liquidate its stake in Vodafone Essar India and in talk with several banks to find the options of bringing its Initial Public Offering. Essar Group’s main activities are in oil, steel and energy field. Essar is planning to reduce its stake in the telecom venture in order to expand its steelmaking, power generation, oil refining, energy exploration and shipping businesses. The company is considering selling part of its stake in Vodafone India through an IPO or the whole 33% to Vodafone. Earlier Vodafone entered india in 2007 by buying into a controlling stake in Hutchison Whampoa Ltd’s mobile business in India, in which Essar had been a partner.

Essar India holds 33% and Vodafone Group holds 67% of the mobile phone operator, which has more than 106 million customers across India.

The company, which may sell its 10% stake within the next year, also has an option to sell its entire stake to Vodafone for $5 billion or it can sell a smaller stake at market trading value. Essar’s 10% stake is valued at nearly $855 million.

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