Piramal Enterprises shares gain 3.7% after Vodafone deal

Written by PTI | New Delhi | Updated: Apr 11 2014, 03:52am hrs
Vodafone IndiaOn the National Stock Exchange, the stock gained 2.15 percent to close at Rs 549.50. (Reuters)
Shares of Piramal Enterprises Ltd gained 3.7 per cent after saying British telecom giant Vodafone Group plc will buy out the company's 11 per cent holding in its India unit for Rs 8,900 crore.

Piramal Enterprises climbed 3.73 percent to Rs 556.15 on the BSE, the highest level since January 22. During the day, the scrip surged 7.63 percent to Rs 577.10.

On the National Stock Exchange, the stock gained 2.15 percent to close at Rs 549.50.

Piramal said in a statement it will get Rs 1,960 per share, over 50 per cent more than the Rs 1,290 a share it paid in 2011-12 to buy the stake in Vodafone India for a total consideration of Rs 5,864 crore.

Vodafone had announced in October 2013 it planned to take full control of its India unit by buying out minority partners for Rs 10,141 crore, after the government allowed foreign companies to own 100 percent in Indian telecommunication firms.

The British group, which entered India in 2007 by buying Hutchison Whampoa's local unit in a USD 11 billion deal, had previously purchased a 4.5 percent stake held by Vodafone India non-executive chairman Analjit Singh.