Ajay Piramal | May sell 5.5% Vodafone stake in 2 years

Ajay Piramal | May sell 5.5% Vodafone stake in 2 years

Ajay Piramal, the chairman of Piramal Healthcare Ltd., said on Thursday that he expects a pre-tax return of 17%-20% per annum from the $640 million investment to buy a 5.5% stake in Vodafone Essar Ltd.

Piramal said that should a proposed initial public offering of Vodafone

India not happen in the next 24 months, then Piramal Healthcare would have other exit options including selling the stake back to Vodafone Group Plc if the foreign direct investment norms permit or to a third party.

He said that the deal was struck at a valuation of 11 times forward enterprise value to earnings before interest, tax, debt and amortization, a valuation multiple used to measure the value of a company.

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