Vodafone to proceed on IPO in India after spectrum auction

British telecom major Vodafone is likely to take a call on the timeline of initial public offer of its Indian arm after conclusion of the impending spectrum auction.

"Timelines (on Vodafone India IPO) will be most probably decided after spectrum auction this fiscal in India is over," a source privy to the Vodafone IPO plan said.

When contacted, a Vodafone spokesperson said, "We have started IPO preparations, which includes conversations with banks, but no final decision has yet been taken as to whether or not we will IPO."

Kotak Investment Banking, Bank of America, HSBC Holdings, Deutsche Bank AG and ICICI Securities for working on the IPO of Vodafone India-- the second largest telecom operator in India.

The Cabinet on Wednesday approved mega-spectrum auction plan in which airwaves worth Rs 5.66 lakh crore for mobile services will be put for auction. However, the timeline for auction was not finalised as Cabinet has asked telecom ministry to seek view of telecom regulator on issue of annual spectrum charges.

As per industry sources, the auction has been planned to start in September but the same has not been confirmed officially.

While the Cabinet has not lowered spectrum base price as demanded by industry, it has relaxed equity lock-in period from 3 years to one year.