Vodafone yet to decide on bankers or timeframe of IPO for Indian unit: Sources

MUMBAI: Vodafone Group Plc. has not made any decision with regards to the bankers or the timeframe of an initial public offering (IPO) for its Indian unit, said a person familiar with details.

The person denied a report that a public listing for the second largest Indian telecom company was due within the year or that NM Rothschild had been appointed for it.

Another person said the global telecom major was engaged with a couple of banks since its initial plan to list the company nearly three years ago, but no final mandate had been given.

“Once a decision to do an IPO is taken, one has to wait for the right business and market conditions. Can that happen within a year, even if the decision were taken now? Who can say,” said the first one.

Vodafone Plc’s spokesman Ben Padovan declined to comment as a matter of company policy.

Talks of a listing of Vodafone India have been on for nearly half a decade now, and garnered most steam last year when investor Piramal Enterprises sought to exit its 11% stake.

However, foreign investment norms for the telecom sector were changed that allowed Vodafone to buy out Piramal. Ever since, the British telecom giant has said it now has ample time to plan the IPO with greater discretion.

Yet, the departure of former chief Marten Pieters, and induction of Sunil Sood as chief executive has triggered a feeling that timelines and intention of such decisions may be rejigged.

Vodafone remains embroiled in an arbitration case worth Rs 20,000 crore against the Indian tax department, which the telecom company had originally said it would resolve before listing the Indian arm.

The Indian taxman had raised a withholding tax demand against Vodafone on its initial buy into India from Hutchison in 2007. The company challenged it in Indian courts until a retrospective amendment legalized the tax demand. The change in law is under challenge in the arbitration.

The process itself has been delayed pending appointment of an arbitrator from the Indian side, as well as a third arbitrator.