Billionaire investor
Ajay Piramal has sold his stake in
British telecom giant
Vodafone Plc, reaping a windfall of 50% return in just two years.
The
Piramal group flagship
Piramal Enterprises has sold its 11% stake to Vodafone for Rs 8900 crore. The flagship company picked up 11% stake in two tranches, in August 2011 and February 2012, paying a total of Rs 5864 crore or Rs 1290 per share.
"The equity purchase in Vodafone was consistent with our objective of making
investments that offer opportunity to generate attractive long-term return on equity, says Ajay Piramal. "I am glad to say that we have delivered against our targeted returns with this investment," he adds.
The Piramal Group had earlier anticipated it would exit through an initial public offer of
Vodafone India shares. The Piramal Group had always maintained Vodafone for it was a financial parking of resources from its deal with Abbott. In September 2010, the group sold its profit making India pharmaceutical business putting around Rs 10,000 crore in its coffers, net of tax and debt repayment requirements.
The group announced it was looking to enter new businesses, but meanwhile the cash lay idle.
Piramal had then said that the investment in Vodafone was to buy time till current research activities, including drug discovery business developed.
