Waiting for right time to list Vodafone India: CEO Colao

The global telecom major's Indian arm has applied for a payments bank license

UK-based telecom company Vodafone plans to list its Indian arm but is waiting for the right time.

“Listing decisions have to be taken at the right time. We are improving our network and building our broadband penetration and one day we will consider an initial public offering (IPO). I am not against it,” said Vittorio Colao, chief executive officer of the Vodafone group, after meeting minister for information technology and communications Ravi Shankar Prasad here on Tuesday.

Also, Vodafone India said it had applied for a payment bank licence and was seeking partners for the banking venture.  “We are keen on building a financially inclusive business model in mobile payments,” the company said in a statement.

For the second time since its entry into India, Vodafone held its global board meeting here. “We brought the board here because India is quickly becoming one of our most important countries and it was good for the board to see our colleagues, to see the commercial activities. Also, we have a transitional change, Sunil (Sood) is becoming the new chief executive, so it was important for the board and for Sunil to spend some time together,” said Colao.

After meeting Prasad, Colao said Vodafone could play a big role in Digital India with the right amount of spectrum. Asked if a tax claim was discussed, Colao said, “Absolutely not.” India is the fourth largest contributor to Vodafone’s worldwide service revenues. The company reported profits in India last year for the first time on the back of growth in data and increased call charges.

Vodafone is facing a tax liability of over Rs 11,200 crore along with interest on its 2007 purchase of Hong Kong-based Hutchison Whampoa's stake in Hutchison Essar.