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Vodafone stated that Piramal Healthcare would get hold of 5.5% equity stake in Indian joint venture Vodafone-Essar.

To buy the said equity stake, British telecommunication giant will pay around $640 million to the company.

In a declaration, Vodafone stated that Piramal Healthcare would buy 5.5% of the issued equity share capital of Vodafone Essar Ltd (VEL) from ETHL Communications Holding Ltd (Essar) for around $640 million.

When met, Piramal Healthcare representative refused to comment.

The newest Vodafone declaration comes over a month after it made settlement with Essar over the latter's 33% in the JV.

"The transaction contemplates various exit mechanisms for Piramal, including both participation in a potential IPO of VEL and a sale of its stake to Vodafone," the report added.

On July 1, Vodafone declared that it would pay $5.46 billion for buying 33% from Essar in their JV Vodafone Essar Ltd.

After getting hold of Essar's 33%, Vodafone's equity stake in VEL would increase to 75.35%, surpassing the FDI boundary of 74%.

Vodafone had stated that it would shift 1.35% equity stake to an Indian shareholder to remain in line with the subsisting FDI rules in the telecommunication segment.

Vodafone had previously this year objected to Essar's plans to move 11% equity stake -- held by ETHL -- to another listed group company India Securities Ltd.

Essar's plan was directed at determining the market worth of its equity stake in Vodafone Essar.

All the matters were cleared up after the decision between Vodafone and Essar that was declared on July 1.