According to Vodafone’s annual report, the company has an agreement to buy Piramal’s 11% stake for `8,300 crore if Vodafone fails to come up with an initial public offering (IPO) by February 2014.
Piramal bought equity in the company when Essar exited from its JV with Vodafone called Vodafone Essar.
Though the exact equity owned by Max India founder Analjit Singh is not known, he owned 6.2% stake before Essar group formally exited the company. “Our Indian partners are Piramal and group of investors led by Analjit Singh,” said a Vodafone India official without disclosing the exact equity structure owned by Analjit Singh.
It is not yet known at what price will Vodafone buy Analjit Singh’s stake. If we assume that the amount paid to Analjit Singh is on a par with Piramal, then Analjit led investors should get close to `11,318 crore for their 15% equity.