Vodafone IPO to hit after spectrum auction

Telecom major, Vodafone India is likely to come out with an initial public offer (IPO) after spectrum auction. The timing of the IPO will be decided after spectrum auction during current financial year. Meanwhile, Vodafone India has started working on the IPO preparations, like conversation with banks and proceedings.

The investment bankers from Kotak Investment Banking, Bank of America, HSBC Holdings, Deutsche Bank AG and ICICI Securities are working on the IPO of Vodafone India, the second largest telecom operator in India.

Vodafone Group is likely to file a draft prospectus for the planned Vodafone India IPO in August with the listing expected in the fourth quarter. The company may raise about USD 2.5 billion (Rs 16885 crore).

On June 22, the cabinet approved mega spectrum auction plan in which airwaves worth Rs 5.66 lakh crore for mobile services will be put for auction. However, the timeline for auction was not finalised because Cabinet has asked telecom ministry to seek view of telecom regulator on issue of annual spectrum charges. 

However, Cabinet has not lowered spectrum base price as demanded by industry, but it has relaxed equity lock-in period from 3 years to one year.

Vodafone Group is a mobile communications company which provides services to mobile voice, messaging, data and fixed line. The company’s money transfer service, M-Pesa, enables people in emerging markets, to send and receive money through a mobile phone. It also has products such as international money transfer, savings and loans, salary disbursements and access to insurance products in different markets.