Banks to Make Pre­sen­ta­tions for Voda In­dia IPO from To­day

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

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

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