Vodafone plans to increase its stake in the Indian unit

Vodafone in planning to buy out minority shareholders in its Indian arm for about US$2 billion, according to a recent report from the Financial Times. Vodafone owns about 64% of Vodafone India. Piramal Healthcare run by Billionaire industrialist Ajay Piramal has 11% stake and the remaining 25% stake is controlled by undisclosed minority shareholders.The latest Indian Foreign Direct Investment (FDI) policy permits 100% stake for foreign businesses, up from the previous limit of 74% to boost the economy. Since then, Vodafone had started to research the possibilities to evaluate the buy-out parameters. PTI is reporting that the Vodafone is planning to by 100% stake in the Indian arm at an approximate value of US$2.7 billion (Rs 16,600 crore), according to their sources, but the FT report is saying that it is not planning to up its stake to 100%.

Vodafone has faced several problems, including license extension issues, $2 billion-plus tax dispute and more. The report adds that Vodafone would file an application later this month to India’s foreign investment promotion board to get permission for the investment.

Author: Srivatsan Sridhar

Srivatsan Sridhar is a Mobile Technology Enthusiast who is passionate about Mobile phones and Mobile apps. He uses the phones he reviews as his main phone. You can follow him on Twitter and Instagram