Vodafone Essar headed for IPO
It is anticipated that in near future Vodafone Essar Ltd will face initial public offer, announced by Vodafone Group PLC Chief Executive Vittorio Colao. The telecom giant, Vodafone Essar Ltd., its majority-owned Indian venture would pave the path to the initial public offering of stock in Vodafone's Indian operations.
Vodafone ended a deal with its Indian partner Essar Group on March 31, to buyout its 33% stake in the venture.
Mr. Colao said that the company has been approached for an out-of-court settlement for its impending tax issue with the Indian government. Although he did not mention who had approached and when Vodafone was approached.
Since 2007, Vodafone is facing tough time in India as it bought Hutchison Whampoa Ltd.'s 67% stake in Hutchison Essar Ltd. for $11.2 billion. Indian government and tax department has asked Vodafone to pay as much as $2.6 billion in taxes and interest on the tax on behalf of Hutchison as Vodafone failed to hold back the tax on behalf of the department and hence they were also asked to pay the penalty.
However, Vodafone has appealed in the Indian courts against the tax department that the deal was between two foreign-registered entities outside India.
