Banks to Make Presentations for Voda India IPO from Today
Mumbai: Banks that have been shortlisted to bid for managing Vodafone India’s planned initial public offering (IPO) are scheduled to make their presentations in the UK starting Monday and the lead bank may be selected by the middle of the week.
Until now, the banks have made preliminary presentations to Rothschild, the advisor to the issue, which has been mandated to keep the final selection down to four. “The beauty parade in London will begin from Monday,” said another person with knowledge of the matter. The objective is to identify the final lead bank by Tuesday or Wednesday, the person said. A handful of domestic and global banks have been invited to make detailed presentations — Goldman Sachs, Citibank, Morgan Stanley, Axis Bank and Kotak Mahindra Bank. Vodafone’s legal adviser is Shardul Amarchand Mangaldas.
The listing of Vodafone India is aimed at lowering the company’s debt, which may increase after an auction of spectrum scheduled later this year, said a person familiar with the details.
Vodafone estimates the value of its India business should be at par with larger rival Bharti Airtel because the brand commands a premium over Bharti in the Indian market, said one of the people. Bharti Airtel has a market capitalisation of .₹ 141,148 crore ($21.2 billion) on the BSE.
The public offer, targeted for June 2017, may be rejigged a fair deal. In February, Vodafone Group and Liberty Group agreed to merge their businesses in the Netherlands into a joint venture (JV). Vodafone said it will make a cash payment of 1 billion to Liberty Global to equalise ownership in the JV.
The merger process may delay the India IPO and once the deal is completed, there may be a disinclination for listing, said one of the people. Vodafone India’s IPO may also be contingent on resolving tax cases filed against the company in Indian courts.
Banks are scheduled to make their presentations in the UK starting today and the lead bank may be selected by the mid week