SlideShare a Scribd company logo
GROUP 6
INVESTMENT BANKING
AKHIL LADDHARANJEET SINGHMADHUSMITASOURAV KUMARBOOBA VIJAY
Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India’s leading
telecom service provider. The Company provides pan India Voice and Data services across 2G, 3G
and 4G platform.
Management
team
1995 2000 2005 2010 2015 2020
In 1995 idea won the licenses to
provide GSM based services in
Gujrat and Maharashtra Circles
Merged with tata cellular
limited
Crossed 6 million
subscribers
Won 3G spectrum in 11 areas
Subscriber based 150
million, and launched 3G
services in metro cities
On 31 August
2018, Vodafone India merged
with Idea Cellular
OVERVIEW
Industry overview and peer comparison
30.9
32.8
26.1
0
5
10
15
20
25
30
35
Airtel vodafone idea jio
Revenue market share (in %)
Vodafone Idea
Limited is an
Aditya Birla Group
and Vodafone
Group partnership.
It is India’s leading
telecom service
provider. The
Company provides
pan India Voice
and Data services
across 2G, 3G and
4G platform.
IDEA
52 wk high 23.44
52 wk low 2.61
AIRTEL
52 wk high 455.65
52 wk low 258.93
101
88
132
Airtel
vodafone idea
jio
Average revenue per user(in ₹)
Total Subscriber (in mn) 4G subscriber (in mn)
Particulars Vodafone Idea Airtel
Return on capital employed -5.26 -1.56
Debt to Equity 1.71 0.85
Price to Book Value Ratio 0.25 1.35
EPS -20.33 -4.58
Book Value 72.7 246.06
Market Cap (Cr.) 19683.74 227068
Suggestion & Recommendation of
Investment Banking Activity26%
16%
11%
VODAFONE
IDEA
AIRTEL JIO
% OF FINANCE COST TO
REVENUE
% Finance Cost to Revenue
46%
33%
29%
VODAFONE
IDEA
AIRTEL JIO
% OF NETWORK EXPENSES
TO REVENUE
% of Network Expenses to Revenue
As per our team analysis, we recommend that company should sale its business to Verizon Communication Inc.
20%
15%
11%
VODAFONE
IDEA
AIRTEL JIO
% OF PASSIVE INFRA COST
TO REVENUE
% of Passive Infra Cost to Revenue
Valuation Method for the Deal
Particulars Amount in Cr.
Market Value of the Company (Cr.) 22643.49
Book Value of the Company (Cr.) 63504.5
Total No. of Shares 2874
No. of Shares held by Promoters 2057
Current Market Price per share 7.8
Book value per share 19
Premium Per Share 4.75
Deal Price Per Share 23.75
Value of Promoters stake (in Cr.) 48847
Strategic Implications
• Vodafone Idea is debt-ridden company, with the
above strategy company can repay its debt.
• Tax Benefit to Acquirer (Jio).
• With this strategy, acquiring company can
increase its customer base which in turn will
help the company grow further.
THANK YOU

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Investment banking

  • 1. GROUP 6 INVESTMENT BANKING AKHIL LADDHARANJEET SINGHMADHUSMITASOURAV KUMARBOOBA VIJAY
  • 2. Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India’s leading telecom service provider. The Company provides pan India Voice and Data services across 2G, 3G and 4G platform. Management team 1995 2000 2005 2010 2015 2020 In 1995 idea won the licenses to provide GSM based services in Gujrat and Maharashtra Circles Merged with tata cellular limited Crossed 6 million subscribers Won 3G spectrum in 11 areas Subscriber based 150 million, and launched 3G services in metro cities On 31 August 2018, Vodafone India merged with Idea Cellular OVERVIEW
  • 3. Industry overview and peer comparison 30.9 32.8 26.1 0 5 10 15 20 25 30 35 Airtel vodafone idea jio Revenue market share (in %) Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India’s leading telecom service provider. The Company provides pan India Voice and Data services across 2G, 3G and 4G platform. IDEA 52 wk high 23.44 52 wk low 2.61 AIRTEL 52 wk high 455.65 52 wk low 258.93 101 88 132 Airtel vodafone idea jio Average revenue per user(in ₹) Total Subscriber (in mn) 4G subscriber (in mn) Particulars Vodafone Idea Airtel Return on capital employed -5.26 -1.56 Debt to Equity 1.71 0.85 Price to Book Value Ratio 0.25 1.35 EPS -20.33 -4.58 Book Value 72.7 246.06 Market Cap (Cr.) 19683.74 227068
  • 4. Suggestion & Recommendation of Investment Banking Activity26% 16% 11% VODAFONE IDEA AIRTEL JIO % OF FINANCE COST TO REVENUE % Finance Cost to Revenue 46% 33% 29% VODAFONE IDEA AIRTEL JIO % OF NETWORK EXPENSES TO REVENUE % of Network Expenses to Revenue As per our team analysis, we recommend that company should sale its business to Verizon Communication Inc. 20% 15% 11% VODAFONE IDEA AIRTEL JIO % OF PASSIVE INFRA COST TO REVENUE % of Passive Infra Cost to Revenue
  • 5. Valuation Method for the Deal Particulars Amount in Cr. Market Value of the Company (Cr.) 22643.49 Book Value of the Company (Cr.) 63504.5 Total No. of Shares 2874 No. of Shares held by Promoters 2057 Current Market Price per share 7.8 Book value per share 19 Premium Per Share 4.75 Deal Price Per Share 23.75 Value of Promoters stake (in Cr.) 48847
  • 6. Strategic Implications • Vodafone Idea is debt-ridden company, with the above strategy company can repay its debt. • Tax Benefit to Acquirer (Jio). • With this strategy, acquiring company can increase its customer base which in turn will help the company grow further.