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<ul><li><keyword id="6411578" type="PERSON" weightage="20" keywordseo="ajay-piramal">Ajay Piramal</keyword> received ₹8,900 crore, a whopping 52% return or $1.4 billion as per the exit agreement from vodafone-Idea.</li><li>Singh however exited <keyword id="6354923" type="UNKNOWN" weightage="20" keywordseo="vodafone-india">Vodafone India</keyword> in 2014 by selling his entire stake to its parent company Vodafone for ₹1, 241 crore.</li><li>Essar agreed to sell their stake at $5 billion which was a part of the deal</li><li>Here is a look at these three wise men</li></ul>The owners and shareholders of Vodafone Idea alike are nervous about its survival. All thanks to Supreme <a href="https://thewire.in/business/apex-court-verdict-on-agr-how-much-will-indias-telecom-industry-have-to-cough-up">Court’s move to support Indian telecom department</a> over a dispute on revenue calculations. That means <a href="https://www.businessinsider.in/stock-market/markets/news/vodafone-idea-share-price-falls-sharply-after-record-loss-in-second-quarter/articleshow/72065283.cms">Vodafone is saddled with a bill of ₹44,150 crore</a>. But not all those who invested in Vodafone have lost. In fact, <a href="https://www.business-standard.com/article/companies/wherever-vodafone-investors-go-hefty-returns-follow-114041500133_1.html">three investors made the right bet at the right time</a> and walked away with handsome profits. Here is a look at these three wise men Ajay Piramal makes 52% returns on his investment 
 
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 Right after the first telecom war cooled off, Vodafone India (before merger with Idea) was back in the green due to reduced competitive intensity. That is when Vodafone was planning to go ahead with a public offer. One of the pre-IPO investors was Ajay Piramal who via Piramal Enterprises purchased 11% stake in 2011-12. He paid ₹5,864 crore but when it became obvious that the IPO plans were not going through, he also sold them in 2014. And, <a href="https://www.forbes.com/sites/naazneenkarmali/2013/12/06/indian-billionaire-ajay-piramal-to-get-500-million-windfall-from-vodafone-stake-sale/#645833232d13">he received ₹8,900 crore</a>, a whopping 52% return or $1.4 billion, as per the exit agreement. Putting it simply, he received a listing premium for an IPO that never happened. Now of course, the Piramals are associated with the reigning telecom giant Jio, by marriage. Ajay Piramal’s son Anand Piramal is married to Isha Ambani, the daughter of Mukesh Ambani, the owner of Reliance Industries. Analjit Singh exits his legacy investments for ₹1, 241 crore 
 
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 <a href="https://www.thehindubusinessline.com/info-tech/analjit-singh-appointed-vodafone-india-chairman/article23065539.ece">Analjit Singh</a>, the founder and chairman of Max India, and his wife held 24.65% in Vodafone through Scorpio Beverages. He <a href="https://www.business-standard.com/article/technology/essar-exits-vodafone-for-5-bn-111040100124_1.html">had been with the Hutch group</a> before it was purchased by Vodafone and also increased in stake later. Singh however exited Vodafone India in 2014 by selling his entire stake to its parent company Vodafone for ₹1, 241 crore. He got <a href="https://economictimes.indiatimes.com/industry/telecom/analjit-singh-to-get-1/7th-of-what-piramal-will-get-for-exiting-vodafone/articleshow/26973026.cms?from=mdr">1/7th of what Piramal received</a>, as the British parent was increasing its stake in the company. He currently heads Max Group that comprises of three holding firms, namely Max Financial Services, Max India and Max Ventures and Industries. The Ruias of Essar call in the cash with their put option 
 
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 When Ruias of Essar sold 67% of controlling stake to Vodafone in 2007, they never exited completely. They had held 33% minority stake in the company. The former deal which landed Vodafone in an <a href="https://www.businessinsider.in/stock-market/markets/news/vodafone-idea-share-price-falls-sharply-after-record-loss-in-second-quarter/articleshow/72065283.cms">unexpected tax case</a>, also provided Ruias with a put option to exit their investment. During the start of this decade, Vodafone was planning an IPO and buying out all the minority shareholders. After multiple rounds of <a href="https://www.business-standard.com/article/technology/essar-exits-vodafone-for-5-bn-111040100124_1.html">negotiating and dilly dallying</a>, Essar agreed to sell their stake at $5 billion which was a part of the deal. However, since the 2007 deal was brokered, the value of India business had gone down due to severe competition as Tata DoCoMo made an entry in 2008. See also: <a href="https://www.businessinsider.in/stock-market/markets/news/vodafone-idea-share-price-falls-sharply-after-record-loss-in-second-quarter/articleshow/72065283.cms">Vodafone-Idea is now a ₹3 stock after a shocking quarterly loss</a> <a href="https://www.businessinsider.in/stock-market/markets/news/vodafone-idea-share-price-falls-sharply-after-record-loss-in-second-quarter/articleshow/72065283.cms"> </a><a href="https://www.businessinsider.in/business/corporates/news/vodafone-writes-off-book-value-of-indian-operation-ceo-flags-liquidation-risk/articleshow/72031766.cms">Vodafone CEO Nick Read hints at a possible collapse without government support</a>

Three wise men who exited Vodafone India just in time to make millions

<ul><li>Vodafone Idea posted a net loss of ₹4,874 crore, or $700 million, in the first quarter of the current financial year. </li><li>The company’s profit margins though almost doubled to 32.4% from the 15.2% in the fourth quarter ending March 2019. </li><li>Its average revenue per user or ARPU stood at ₹108, which went up by 3.3% quarter on quarter. </li></ul> Vodafone Idea posted a net loss of ₹4,874 crore, or over $700 million, in the first quarter of the current financial year. In the last quarter ending March 2019, it posted ₹4,881 crore in profits. On a quarter on quarter comparison, revenues fell by 4.3% to ₹11,269 crore mostly due to customers churn who recharged with service validity vouchers. The company said that its best customers or those who provide it with high revenues, have ‘down-traded’. It means that they have moved away to cheaper plans or service providers who offer bargains. ‘Benefits not visible on topline’ The company’s profit margins though almost doubled to 32.4% from 15.2% in the fourth quarter ending March 2019. “We are delivering on our stated strategy, although the benefits are not yet visible in our top line. We are well on track to deliver our synergy targets by Q1 of 2020-21. We expect these factors to increasingly contribute to our financial performance going forward,” said Balesh Sharma, CEO Vodafone Idea. The company also said that they are working towards integration of Vodafone India and Idea Cellular, which is improving customers’ data experience. “We now lead the league tables on data download speeds in Delhi, West Bengal and Chennai,” said Sharma. Its average revenue per user or ARPU stood at ₹108, which went up by 3.3% quarter on quarter. The stock of Vodafone Idea fell by 4.8% in today’s trade ahead of earnings announcement. Price war rages on Analysts believe that Vodafone’s fate will largely depend on the pricing strategy of competitors. That means if Jio increases prices, it will create room for others too, to follow suit thereby improving its chances at margins. At this juncture though, Vodafone Idea can make few mistakes as it is in a tough cash position. “VIL is moving in the right direction by strengthening 4G rollouts, balance sheet through rights issue, stake sale in Indus and potential monetization of fiber assets. That said, low EBITDA, substantially higher leverage and persistent cash burn has put VIL in precarious position with limited room to err. Synergy benefits, substantial 4G sub additions and tariff hikes are essential,” said an HDFC report in May, after its March 2018-19 results.

Vodafone Idea clocks a loss over $700 million in 3 months as Reliance Jio's price war continues to bite

<ul><li>According to the report, Google is looking to acquire a stake of 5% in <keyword id="1553175" type="COMPANY" weightage="20" keywordseo="Vodafone-Idea">Vodafone Idea</keyword>.</li><li>The news comes after Facebook picked up a 9.99% stake in leading telecom operator Reliance Jio for $5.7 billion.</li><li>Google’s interest in Vodafone Idea could be an after-thought, after it reportedly missed out on the Jio deal to Facebook.</li></ul>Shares of Vodafone Idea have surged by more than 30% on May 29 after reports suggested Google is exploring a stake purchase in struggling telecom operator. The move comes after Facebook picked up a 9.99% stake in Reliance Jio, India’s leading telecom operator. According to a <a href="https://www.ft.com/content/3f763918-d0b1-4a02-a581-e241753c75eb">report</a> by Financial Times, Google could pick up a 5% stake in Vodafone Idea. The report also adds that the talks are still in a “very early stage”, so the details of the deal could change. The report further adds that Google is also in talks to acquire a stake in Reliance Jio, and that the talks are still ongoing. However, since <a href="https://www.businessinsider.in/business/news/why-facebook-owner-mark-zuckerberg-wants-stake-in-mukesh-ambani-owned-reliance-jio/articleshow/74803994.cms">Facebook has already joined Jio</a>, it might make sense for Google to pick up a stake in Vodafone Idea, which is the second largest telco in the country by number of subscribers. <div type="Article" hostid="261" msid="74964136" title="A new research report says Vodafone Idea has to increase tariff by 39% to survive – and that will be a bounty for Reliance Jio and Airtel" mstype="2" mssubtype="0"></div> <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/2615319" data-url="https://flo.uri.sh/visualisation/2615319/embed"></div>]]></cdata></div> Note: Vodafone Idea's share price on 29-05-2020 is taken at 12:10 pm. A deal with Vodafone Idea could also come at a comparatively discounted price. Even though its share price has increased by 84% since March, it is relatively cheaper when compared to rival telecom operators like Airtel. <table><tbody><tr><td>Company</td><td>Market capitalisation (in crore)</td></tr><tr><td>Reliance Jio</td><td>₹4,89,075</td></tr><tr><td>Airtel</td><td>₹3,07,000</td></tr><tr><td>Vodafone Idea</td><td>₹16,665</td></tr></tbody></table> Note: Reliance Jio's valuation is based on the latest investment made by KKR. Airtel and Vodafone Idea's valuations are based on the closing price as on May 28, 2020. Vodafone Idea and its timeline of woes Since the entry of Jio, Vodafone Idea has <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-and-its-timeline-of-woes/articleshow/74577942.cms">posted cumulative losses</a> of ₹77,000 crore, with ₹50,922 crore coming in September 2019 alone. It was hit by a demand of ₹53,000 crore by the Supreme Court for recovery of adjusted gross revenue dues. In November 2019, the telco’s UK parent Vodafone Plc wrote down the value of its Indian entity to nil. It also lost 36 million subscribers in the same month. According to the <a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambanis-reliance-jio-becomes-the-largest-telco-by-revenue-and-subscribers-as-industry-shows-signs-of-recovery/articleshow/73667566.cms">latest numbers</a> released by the Telecom Regulatory Authority of India (TRAI), Vodafone Idea has 336 million subscribers, while Jio is <a href="https://www.businessinsider.in/business/corporates/news/microsoft-mukesh-ambani-reliance-jio-are-partners-but-satya-nadella-wants-more/articleshow/76057690.cms">said</a> to have 387 million subscribers. <div type="Article" hostid="261" msid="74577942" title="Vodafone Idea and its timeline of woes" mstype="2" mssubtype="0"></div> The Indian telecom sector is too lucrative for the big tech companies to ignore The Indian telecom sector presents a good investment opportunity for big tech companies to expand their presence in the country. Although Vodafone Idea’s status is <a href="https://www.businessinsider.in/business/telecom/news/bharti-airtels-ceo-wants-vodafone-idea-to-survive-and-stay-on/articleshow/73973990.cms">critical right now</a>, the recent price hikes by all the three major telecom companies gives it a chance to survive in the market. Further, the Jio-Facebook deal has opened up the Indian telecom sector for investments. Since the deal with Zuckerberg’s company, Jio has found buyers in KKR, General Atlantic, Silver Lake and Vista Equity Partners. Airtel, the third-biggest telco, is also <a href="https://economictimes.indiatimes.com/markets/stocks/news/airtel-parent-to-raise-1-billion-via-share-sale-today/articleshow/75989710.cms">looking to raise</a> $1 billion by selling a 2.75% stake to Fidelity, Segantii Capital, Norges Bank and others. Jio changed the face of Indian telecom sector India’s telecom sector has seen major upheaval since the entry of Mukesh Ambani-led Reliance Jio. After Jio’s entry, the Indian telecom sector has seen minor players like Tata Docomo, Aircel, Reliance Communications, Telenor either wind up or sell their business to Airtel. Amidst all this, Vodafone and Idea, which were two separate operators, decided to merge in 2018 to take on Reliance Jio. However, since then, the merged entity Vodafone Idea has been losing millions of customers due to multiple issues, including business uncertainty and a fall in its quality of service. Jio was the major beneficiary of this, going on to become the <a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambanis-reliance-jio-becomes-the-largest-telco-by-revenue-and-subscribers-as-industry-shows-signs-of-recovery/articleshow/73667566.cms">largest telecom operator in India</a> both by revenue and number of subscribers. Update: Vodafone Idea in a statement to NSE has said, "As part of corporate strategy, the company constantly evaluates various opportunities for enhancing the stakeholders’ value. As and when such proposals are considered by the Board of Directors of the Company warranting disclosures, the Company shall comply with the disclosure obligations under the SEBI Regulations. Currently, there is no proposal as reported by the media that is being considered at the Board." SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/airtel-share-price-target-as-africa-unit-nears-a-billion-dollars-in-revenue/articleshow/75970641.cms">Airtel’s Africa unit is now a nearly-billion dollar business where every user pays 40% more than the one in India</a> <a href="https://www.businessinsider.in/business/telecom/news/if-vodafone-idea-increases-tariff-it-will-help-airtel-and-reliance-jio/articleshow/74964136.cms">A new research report says Vodafone Idea has to increase tariff by 39% to survive – and that will be a bounty for Reliance Jio and Airtel</a> <a href="https://www.businessinsider.in/business/telecom/news/india-is-changing-its-mobile-habits-and-that-can-help-airtel-and-vodafone/articleshow/75152973.cms">India is changing its mobile habits and that can help Airtel and Vodafone</a>

Vodafone Idea shares surge more than 30% after Google reportedly considers a stake in the debt-laden telco

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Three wise men who exited Vodafone India just in time to make millions

Preeti Soni

Vodafone Idea clocks a loss over $700 million in 3 months as Reliance Jio's price war continues to bite

Katya Naidu

Vodafone Idea shares surge more than 30% after Google reportedly considers a stake in the debt-laden telco

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