With a view to stake a higher claim in the issued equity share capital of Vodafone India Limited (VIL) from the ETHL Communications Holdings Limited (Essar), Piramal Healthcare (PHL) today announced its plan to acquire further 5.5 per cent stake in Vodafone India.

PHL has agreed to purchase approximately 5.5 per cent of the issued equity share capital of VIL from Essar for a cash consideration of approximately Rs.3,007 crore (approximately £385 million) taking the total shareholding of Piramal in VIL to 11 per cent.

The transaction follows the settlement between Vodafone and Essar over the sale of Essar’s approximately 33 per cent stake in VIL, announced in July 2011, and the purchase by Piramal of approximately 5.5 per cent of the issued share capital of VIL from Essar in August 2011. PHL's investment of Rs.2,856 crore to acquire 5.5 per cent equity stake in Vodafone India Ltd in August 2011 has resulted in interest/current income generating investments being replaced by Vodafone investment.

The transaction contemplates various exit mechanisms for Piramal, including both participation in a potential initial public offering of VIL and a sale of its stake to Vodafone.

PHL is one of India’s largest healthcare companies, with a growth track record of above 29 per cent CAGR since 1988. Piramal Healthcare had consolidated revenues of $ 650 million in FY2011.