Vodafone has confirmed it is preparing for a potential IPO of its Indian unit. While preparations are underway, the company has yet to make a final decision on whether or not it will list, a spokesperson for the UK-based operator said.
Vodafone (LON:VOD) has confirmed it is preparing for a potential IPO of its Indian unit.
While preparations are underway, the company has yet to make a final decision on whether or not it will list, a spokesperson for the UK-based operator said.
“Whether we go ahead or not will depend on a number of factors, including market and industry dynamics in India, he added.
Vodafone group CEO Vittorio Colao (pictured), currently visiting India, told local media that he “was positively inclined to an IPO”.
Vodafone over the summer spent months discussing possible European asset combinations with Liberty Global, leading industry observers to question whether the UK mobile giant would hold onto its Indian and African businesses in the event of a full merger. The assumption has always been that Vodafone would list its Indian business once its local tax cases were settled.
Vodafone India, the number two player with some 183.88 million subscribers as of 31 March, has been considering such a transaction for several years.
It is one of multiple foreign companies to have faced accusations of underpaying local taxes.
Earlier this month, the Bombay High Court ruled in favour of Vodafone in a £450m (US$690m) tax case covering the treatment of a call centre and share options following its US$10.9bn takeover of Hutchison Essar in 2007.
However, a separate US$2.6bn tax dispute with the Indian government remains under international arbitration.
Mumbai-based Vodafone India posted service revenues of £1.13bn (US$) for Q2 2015, up from £1.02bn for Q2 2014. The parent company noted that the service revenue growth rate had slowed due to the impact of regulation, including Trai’s 30% cut to the mobile termination rate in February.
In its Q2 report, Vodafone said that under its ‘Project Spring’ network development plan, it had boosted 3G outdoor population coverage in targeted urban areas to 91%. It is currently trialling 4G services in selected areas, with plans to launch them in Kerala in December.