"The acquisition is not cheap (for Vodafone) on valuation basis," Fitch Ratings Director Corporates and lead analyst for Indian telecommunications sector Priya Gupta said in a teleconference from Singapore.

The agency also said that the Indian telecom space may witness further acquisitions, including some mega mergers, as various international players are interested in the country's growing market.

"We expect the Indian telecoms sector to consolidate further as the market is highly fragmented. Several international players like two Malaysian firms -- Maxis and Telekom Malaysia -- have shown keen interest in the sector," Gupta said.

Responding to a query if Vodafone, after completion of the acquisition procedure of Hutch-Essar, would consider an initial public offer of its Indian unit, Gupta said: "We hope Vodafone would list its Indian entity on the bourses in the country.

"As a rating agency we welcome any such move by a company as its gives increasing transparency and disclosure levels of its operations," she added.

Interestingly, the rating agency believes the inflow of cash for HTIL through the sale of the Indian unit is likely to be used up for paying its debts and would be retained for future growth.

Hutchison Whoampa (HWL), a 49 per cent stake holder in HTIL, might not gain considerably from the deal proceeds, however its shareholders are likely to benefit.

"The quantum of amount is not substantial for a rating change for Hutchison Whoampa but its shareholders might get special dividends," Fitch Ratings lead analyst for HWL Kalai Pillay said.

Currently, Fitch's rating for Hutchison Whampoa Ltd is 'A-' with a stable outlook, which has not been changed after the deal.

The race for Hutch-Essar: Complete coverage