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Vodafone Said To Be Considering An IPO For Its India Unit

Vodafone Group Plc is apparently exploring the option of taking its Indian arm public as wireless growth in the country is outpacing growth in more mature markets such as its home market, UK.

vodafone

Investment bank Rothschild is compiling a report about the benefits of a possible IPO which will be delivered around August according to a Bloomberg report.

An IPO would provide Vodafone with cash and will give investors the opportunity to bet specifically on the Indian market, but the decision to go public will be taken once the report is in.

The Indian unit’s earnings before interest, taxes, depreciation and amortization hit nearly $2 billion in the latest fiscal year, on a revenue of $6.6 billion.

Vodafone India has over 180 million customers, making it the largest unit in terms of customers, and contributed to 10% of the group’s total earnings.

In India, Vodafone recently took part in the airwaves auction which saw wireless operators spend a combined $18 billion, but had earlier said that it wouldn’t consider an IPO of its Indian unit until it has greater certainty about its access to airwaves.

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