Business International

Vodafone picks BofA, Kotak, UBS, other banks for India IPO – sources

Image: A vendor selling “paani puri”, a traditional Indian snack, walks past closed shops displaying an advertisement for Vodafone in Jammu May 22, 2012. REUTERS/Mukesh Gupta/File photo

By S. Anuradha and Sumeet Chatterjee

SINGAPORE/HONG KONG, (Reuters) – British telecoms operator Vodafone has picked Bank of America Merrill Lynch (BofA), Kotak Investment Banking and UBS as joint global coordinators of its Indian unit’s IPO, people familiar with the matter said, kicking off its long-awaited listing plan.

The IPO is expected to raise between $2 billion–$2.5 billion, Reuters previously reported, which, at the upper end, would make it India’s biggest stock market listing since state-owned Coal India Ltd raised $3.5 billion in 2010.

Deutsche Bank, HSBC and ICICI Securities have won joint book-runner roles, the people added, declining to be identified as the information is not public. Vodafone is likely to launch the IPO early next year, they said.

The deal offers a rare opportunity for international banks in a market where equity capital raisings worth more than $1 billion are uncommon and where stock underwriting fees are amongst the lowest in the world.

Vodafone said in November it had started preparations for floating its Indian subsidiary. IFR, a Thomson Reuters publication, said in a report the IPO is expected to raise $2 billion-$3 billion.

The company was not immediately available for comment outside its regular business hours when Reuters attempted to contact it on Saturday.

Vodafone, India’s second-largest mobile operator behind Bharti Airtel, had raised the prospect of a listing in India as early as 2011. The company is one of the largest corporate investors in Asia’s third-largest economy and is expected to use the proceeds to buy additional radio spectrum and further expand its operations across India’s crowded and cut-throat telecoms market.

Indian mobile phone operators have been spending heavily in setting up fourth-generation (4G) mobile broadband data networks to meet expected demand.

Vodafone entered India in 2007, when it acquired a majority stake in Hutchison Essar and since 2014 has wholly owned Vodafone India, which operates in a market that has over a billion mobile subscribers – the second-biggest market in the world behind China.

Reuters reported last week that Vodafone had invited foreign and Indian banks to pitch for the Indian IPO.

Kotak Investment Banking is a unit of Kotak Mahindra Bank. All six banks did not immediately respond to Reuters’ requests for comment.


(Reporting by S. Anuradha of IFR and Sumeet Chatterjee; Additional reporting by Elzio Barreto; Writing by Denny Thomas; Editing by Muralikumar Anantharaman)

Copyright 2015 Thomson Reuters. Click for Restrictions.

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