Piramal expects 20 return from Vodafone deal

Piramal Healthcare expects about 20 per cent return from its Rs 2,856-crore investment for buying 5.5 per cent stake in Vodafone India in the next two years. The company also said that it will put in Rs 7,000 crore in its pharmaceutical business by 2016.

We are acquiring a 5.5 minority stake in Vodafone for Rs 2,856 crore. We expect 17-20 per cent return over the next two years, Piramal group chairman Ajay Piramal said. The expected return of 20 per cent would work out to be around 128 million about Rs 580 crore.

Piramal said the company would not take a board seat. Hinting at a possible sale, he said,You have heard Vodafone talking about an IPO in the past8230; Therefore,we are assuming that this IPO will take place anywhere in the next 12-24 months. Under the deal,Piramal can exit its stake at the time of an IPO by Vodafone.