Telecom

Government allows 100% FDI in Bharti Airtel

Updated : January 22, 2020 06:26 AM IST

Last year, the Department of Telecom had returned Bharti Airtel’s FDI application as the company had not provided clarity on the foreign investor.

Earlier, Bharti Telecom, a promoter of Bharti Airtel, had sought government nod for the infusion of Rs 4,900 crore investment from Singtel and other foreign entities.

The Narendra Modi government on Tuesday approved up to 100 percent foreign direct investment (FDI) in Bharti Airtel from 49 percent allowed earlier.

Last year, the Department of Telecom had returned Bharti Airtel’s FDI application as the company had not provided clarity on the foreign investor.

"Further to our letter dated August 08, 2019, Bharti Airtel Limited (the Company) has received the approval from Department of Telecommunications (DoT) vide its letter dated January 20, 2020, for increasing the limit of foreign investment up to 100% of the paid-up capital of the Company," Bharti Airtel said in a regulatory filing.

"It may also be noted that subject to applicable laws, the aforesaid approval read together with the RBI approval dated July 03, 2014, granted to the Company allows the FPls/Flls to invest up to 74% of the paid-up capital of the Company," it added.

Earlier, Bharti Telecom, a promoter of Bharti Airtel, had sought government nod for the infusion of Rs 4,900 crore investment from Singapore-based Singtel and other foreign entities.

The fund infusion will enhance foreign stakeholding in Bharti Telecom to over 50 percent that will make it a foreign-owned entity.

Sunil Bharti Mittal and his family own around 52 percent stake in Bharti Telecom, at present. Bharti Telecom holds around 41 percent stake in Bharti Airtel while foreign promoter entities hold 21.46 percent stake in the telecom firm. Public shareholders have around 37 percent stake in the company.

Government allows 100% FDI in Bharti Airtel

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