Vodafone India IPO needs big equity story

The telecom carrier faces multiple operational risks including ongoing tax litigation, rising costs and growing competition.

British telecommunications giant Vodafone will have to pull out all the stops and produce a compelling and comprehensive business plan if it is to entice investors in the run-up to the initial public offering of its Indian operations later this year.

Bankers familiar with the situation said Thursday that Vodafone India is set to begin meeting investment banks early next week to select underwriters for the IPO that could raise about $2 billion, although the precise size could vary depending on deal structure and valuation.

The deal will almost certain draw massive attention from local and foreign investors alike, given the relatively low mobile penetration rates in...

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