Piramal Enterprises Ltd today said it will sell its 11 per cent stake in Vodafone India to the UK based telecom giant for Rs 8,900 crore.
The company has agreed to divest its entire equity stake, comprising 45,425,328 shares (11 per cent), in Vodafone India Ltd to Prime Metals, an indirect subsidiary of Vodafone Group Plc, for a total consideration of Rs 8,900 crore, Piramal Enterprises said in a statement.
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The company has valued the shares of Vodafone India Ltd at Rs 1,960 per share, it added.
Piramal had acquired Vodafone India shares at an average price of Rs 1,290 per share for a total consideration of Rs 5,864 crore in two tranches during FY12, the company said.
“The equity purchase in Vodafone was consistent with our objective of making investments that offer opportunity to generate attractive long term return on equity”, Piramal Group Chairman Ajay Piramal said.
“I am glad to say that we have delivered against our targeted returns with this investment”, he added.
Piramal Enterprises shares were trading at Rs 568.15 apiece on the BSE, in afternoon trade, up 5.97 per cent from its previous close.
Piramal Enterprises agrees to sell Vodafone India stake for $1.48 bn
(Reuters) –Piramal Enterprises Ltd said on Thursday it agreed to sell an about 11 percent stake it owns in the Indian unit of Vodafone Group Plc to the British group for 89 billion rupees ($1.48 billion).
The deal is part of Vodafone’s plan first announced last October to take full control of the unit for a total 101.41 billion rupees, following a change in rules allowing foreign companies to own up to 100 percent of Indian telecommunication carriers.
Vodafone, which entered India in 2007 by buying Hutchison Whampoa’s local cellular assets in a $11 billion deal, directly and indirectly owns a combined 84.5 percent of Vodafone India, the country’s No.2 telecoms company by users and revenue.
Vodafone received the Indian cabinet’s approval in February to buy stakes from its minority Indian partners — Piramal and Indian businessman Analjit Singh.
Piramal had bought the 11 percent stake in Vodafone India in two tranches during the financial year to March 2012 for 58.64 billion rupees. It is selling the stake to Prime Metals Ltd, which it said is an indirect subsidiary of Vodafone Group.
Piramal shares rose as much as 7.1 percent after the announcement.