Vodafone India chief sees no hurdle to bid for entire stake

Vodafone India chairman Analjit Singh, who is also a minority shareholder in the company, expects no hurdle to the British major's application to raise its stake in the local unit to 100 per cent.

"Vodafone has made application to the FIPB (Foreign Investment Promotion Board) to raise its stake to 100 per cent....Vodafone application to buy out stake of Ajay Piramal and my group is with the FIPB. Hope the board approves it in the next two months," he told reporters on the sidelines of a capital markets summit by ISB here over the weekend.

Mr Singh, who is also the founder-chairman of the Max Group, holds a 6.24 per cent stake in Vodafone India.

The British telecom major applied to investment board FIPB last month seeking approval to buy to raise its stake to 100 per cent after government allowed 100 per cent FDI in the telecom sector in September.

The other minority shareholder is Ajay Piramal who owns a little over 11 per cent. IDFC and individual investors hold 18.8 per cent in the company.

Mr Singh, who was appointed non-executive chairman in February last year, said it has been only two weeks that the application has been moved by the company and his guess is that it will be cleared in the next two-three meetings.

"The matter is clear...it is normal business, there is nothing exceptional in it."

The FIPB in its November 13 meeting didn't take up the proposal of British telecom major.

 "All ministries and departments concerned did not give their comments, so the Vodafone proposal was not taken up," an official had said.

The buyout is estimated to cost Vodafdone Plc, the world's largest telecom company, close to Rs 10,500 crore.

On his group's insurance business, Mr Singh said it is looking up after the troubles of the last two-three years.