Vodafone India puts its IPO on hold owing to lack of clarity over spectrum pricing

Vodafone India has put its initial public offering (IPO) on hold over lack of clarity regarding spectrum pricing and as well as the extension of its existing licences.

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According to Marten Pieters, managing director and chief executive officer, Vodafone India, the operator has put its planned IPO on hold as it is awaiting clarity from the government on spectrum pricing and extension of its licences in the Mumbai, Delhi and Kolkata circles. The operator?s licences in these three circles are coming up for renewal in November 2014.

Earlier, Vodafone India had requested the government to extend its licences in the three circles under Clause 4.1 of the licence agreement. As per the clause, the government can extend the period of licence by another 10 years if a request is made by the operators during the 19th year of operations since the award of the licence.

However, the government has turned down operator?s request and asked it to bid for spectrum in the upcoming auctions to continue its telecom services in the three circles.