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Piramal sees 17-20% returns from Vodafone investment
Pharma major Piramal Healthcare on Monday said its investment in Vodafone India was not a strategic one and it would look at selling its stake in case the cellular services provider came out with an IPO (initial public offering).
Pharma major Piramal Healthcare on Monday said its investment in Vodafone India was not a strategic one and it would look at selling its stake in case the cellular services provider came out with an IPO (initial public offering).
The company expects expects 17-20% returns from the investment in 12-18 months, Chairman Ajay Piramal said.
Piramal Healthcare had said on Saturday it agreed to acquire additional 5.5% stake in Vodafone India for Rs 3,007 crore. The stake will be acquired from ETHL Communications Holdings (Essar), and post the stake buy Piramal will hold about 11% in Vodafone India.
The deal provides Piramal option to exit Vodafone India in future through various means including through a potential public share sale by the unit of UK's Vodafone Group PLC and by selling its stake back to Vodafone.
Vodafone has been looking to list the Indian arm on the stock exchanges. Media reports last month said Vodafone Group PLC has roped in investment bank NM Rothschild to assist in the IPO.
CNBC-TV18 had reported last month the issue may hit the street in 2013. Piramal meanwhile said there has been no intimation from Vodafone on the IPO.
Piramal Healthcare shares were up 1.8% at Rs 445.60 on NSE on Monday.
