Mumbai, Aug 11 (IANS): A day after announcing that it would purchase 5.5 percent in telecom major Vodafone's Indian operations, the scrip of Ajay Piramal-promoted Piramal Healthcare was ruling 1.62 percent higher in noon trade at the Bombay Stock Exchange.

Pirmal Healthcare, in a late evening statement Wednesday, said it had agreed to purchase "approximately 5.5 percent of the issued equity share capital of Vodafone Essar Ltd from ETHL Communications Holdings -- a subsidiary of the Essar group for cash consideration of Rs.2,856 crore (about $640 million)".

The Piramal Healthcare scrip rose to an intra-day high of Rs.376.40 on the BSE in opening trade. It had closed Wednesday at Rs.369.40.

The deal follows the settlement between Vodafone and Essar over the sale of Essar's approximately 33 percent stake in VEL , announced on July 1, 2011, said the statement from Piramal Healthcare.

The transaction contemplates various exit mechanisms for Piramal, including both participation in a potential initial public offering of VEL and a sale of its stake to Vodafone.

According to Pirmal, the firm had the option of exiting the investment through an initial public offering if Vodafone chose to get listed on the Indian stock exchanges in the future.

It also had the option of selling the stake back to Vodafone.

Vodafone had bought out its former joint venture partner Essar's 33 percent stake, taking its stake past the permissible limit of foreign ownership in a telecom firm, which is at 74 percent.

With this deal, Vodafone will be able to bring down its stake in the Indian mobile company.

On the other hand, analysts said, Piramal Healthcare promoter Ajay Piramal was looking to park excess funds after successfully selling off certain businesses in the recent past.