Vodafone’s much-awaited Indian initial public offering is unlikely to take place this year, the company said on Thursday, brushing aside recent speculation that one was imminent.
In October last year, the company confirmed that “preparatory work” for the IPO was underway, subject to market conditions.
“I think that given the speed at which the spectrum auctions are moving, and with all the uncertainty, doing an IPO this calendar year would be a surprise,” said Nick Read, Chief Financial Officer of Vodafone, during a conference call to discuss the telecom giant’s quarterly results. It would take another “12 months minimum,” he added.
“We are working on the preparation - the timing of the IPO depends on the one hand on bureaucratic approvals and market conditions, and on the financial market,” said CEO Vittorio Colao.
In 2012, the company had signalled an interest in an IPO in India, though these plans were put on hold following the dispute with tax authorities and regulatory changes. However in the past year, a number of key developments have taken place, including the Supreme Court judgment requiring Vodafone Mobile Services — a division of Vodafone India — to pay ₹2,000 crore to merge four entities — a move that would be a pre-requisite for an IPO.
On Thursday, Vodafone reported a 1.4 per cent rise in revenue for the quarter ended December, the sixth successive quarter of improved growth. In India, though service revenue grew 2.3 per cent, it was slower than the previous quarter, when revenues were up 5.6 per cent.
The company attributed it to the increased pressure on voice and data pricing from competition and a growth in data usage. During the quarter, the company added 5.4 million new customers, expanded its network of 3G sites by 7,600 and rolled out 4G services across two circles.