Vodafone Group Plc, the world’s largest mobile operator by revenues is preparing for an initial public offering of its India unit, Vodafone India, global CEO V Vittorio Colao told a select Editor’s round table meet on Wednesday.
“We have done preparatory work on the IPO so that we can take a decision,” Colao said. He, however declined to give an exact timeline stating that there are many factors that influence the IPO one way or the other but the company was positive.
Vodafone has been toying with the idea of coming out with an IPO for its India unit for quite sometime now for but the over Rs 12,000 crore capital gains tax dispute with the Indian government has been acting as an obstacle. The matter is currently under arbitration.
The company has recently won two transfer pricing case in the Bombay High Court out of which in one the government has decided not to appeal in the Supreme Court. As regards other which came only last week a final decision has not been taken but the likelihood of the government appealing against it is very remote.
Vodafone India, which is the second largest mobile operator in the country by revenues and subscriber, has invested so far around Rs 83,000 crore towards capex and spectrum and plans to start its 4G services by December this year.
Its capex in FY15 was Rs 8,500 crore which was 37% higher than a year before. Close to 60% of its capex was spent on data and the company would spend a similar amount in the current fiscal also.