Vodafone on Sunday announced that they are not against Essar for conducting an IPO of their 33% stake in Vodafone-Essar JV. However this British telecom company assumed that the Indian firm fails to provide the material information to the SEBI and the BSE about the proposed merger of two companies.

On the contrary Essar refuse any such allegations and said that the company has previously made clear its stand.

Essar said that there was a proposal of merging Essar Telecommunications Holding Private Limited (ETHPL), which has 11% interest in Vodafone-Essar joint venture, with another listed company Indian Securities Limited (ISL) of the group. But Vodafone was against such merger because they believe that this merger may misrepresent the valuation of the JV.

Whereas according to Essar this merger is accommodating all the applicable Indian laws, capital and financial sector regulations.

Vodafone said in a statement that they are not against Essar conducting an IPO of their stake but they are objecting the merger.

Vodafone believe that material information has not been provided to the market and has raised objections with the Madras High Court, BSE and SEBI.

Vodafone Essar holds more than 124 million mobile subscribers in the nation spotting the third largest telecom operator in India. Vodafone has 67% shares as the remaining are with Ruias-led Essar in the joint venture.