Vodafone seeks government approval to own more shares India unit

By IVCPost Staff

Oct 29, 2013 03:19 PM EDT

Vodafone Group Plc sought approval on Tuesday, Oct. 29, to raise the number of shares of its India unit for $US1.65 million according to a report by Reuters. The report said that Vodafone's action took place after India allowed foreign-owned companies full ownership of local carriers.

The company entered the Indian market in 2007 after it bought Hutchison Whampoa's local cellular assets for $US11 billion. According to reports, the buyout that year resulted in an 84.5% ownership, both direct and indirect, of Vodafone India, the number 2 telecoms company in India by user standards.

At present, Vodafone owns 64.38% shares of its India unit.

India relaxed its rules on foreign holdings in the telecoms sector last August to allow foreign companies own 100% of their Indian enterprises. Before changing the rules on ownership, foreign companies such as Vodafone had limited stakes. Foreign ownership of Indian carriers could not go beyond 74%.

Piramal Enterprises, an Indian company that is part of the Piramal Group, owns 11% of Vodafone India. The remainder of Vodafone India is owned by investors, which include Analjit Singh, an Indian businessman who serves as Vodafone India's non-executive chariman.

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