Vodafone said to be moving closer to IPO in India

Vodafone is reported to have moved a step closer to the long anticipated stock market listing of its Indian subsidiary after it appointed the investment bank NM Rothschild to assist in its listing plans.

The company held a preliminary briefing last month with investors and analysts where it outlined the Indian subsidiary’s performance, and in light of ongoing disputes, the regulatory risk inherent in the Indian market.

When asked about Rothschild’s appointment, a Vodafone India spokesperson told local media in India that it is already known that the cellco is preparing itself for a potential IPO in the future.

Last April, Vodafone was reported to be considering offering up a 10 per cent stake to the public through the IPO.

In July 2011, Vodafone agreed terms for the buy-out of former partner Essar from its Indian mobile phone business. The UK firm paid US $5.46 billion for Essar’s 33 per cent stake, raising its own stakeholding 74 per cent. The other 26 per cent is owned by Indian investors, in compliance with Indian law.