Piramal acquires 5.5% in Vodafone
Recently, Ajay Piramal of Piramal Healthcare has purchased 5.5% stake in India’s third largest mobile service provider Vodafone Essar for Rs 2900 crore, or 640 million. Piramal Healthcare struck the deal at a discount valuing British telecom giant Vodafone’s India unit at Rs 52,000 crore (11.6 billion).
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With this, Vodafone has now complied with regulations stipulating 74% limit on foreign direct investment in the domestic telecom sector.
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Please note that Vodafone’s stake had crossed 75% after buying out erstwhile partner Essar’s 33% stake in July 2011.
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Its worth note that in Feb 2007, when Hutch sold 67% interest to Vodafone, the enterprise value was estimated at 18.8 billion (nearly Rs 83,000 cr at the exchange rate then) Vodafone Essar was valued at 16.5 billion (Rs 73,500 cr) after Essar agreed to sell its 33% interest in the company for around 5.5 billion, including taxes of 460m, last month.
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In August 2011, Piramal decides to acquire 5.5% stake for 640 million, which values Vodafone’s Indian operations at 11.6 billion (Rs 52,500 cr)
