Piramal to divest 11 pc stake in Vodafone India for Rs 8,900cr

Piramal Enterprises today said it will sell its 11 per cent stake in Vodafone India to the UK based telecom giant for Rs 8,900 crore.

The company has agreed to divest its entire equity stake, comprising 45,425,328 shares (11 per cent), in Vodafone India Ltd to Prime Metals, an indirect subsidiary of Vodafone Group Plc, for a total consideration of Rs 8,900 crore, Piramal Enterprises said in a statement.

The company has valued the shares of Vodafone India Ltd at Rs 1,960 per share, it added.

Piramal had acquired Vodafone India shares at an average price of Rs 1,290 per share for a total consideration of Rs 5,864 crore in two tranches during FY12, the company said.

"The equity purchase in Vodafone was consistent with our objective of making investments that offer opportunity to generate attractive long term return on equity", Piramal Group Chairman Ajay Piramal said.

"I am glad to say that we have delivered against our targeted returns with this investment", he added.

Piramal Enterprises shares were trading at Rs 568.15 apiece on the BSE, in afternoon trade, up 5.97 per cent from its previous close.