The Department of Telecommunications (DoT) on 20th January approved the increase of Foreign Direct Investment (FDI) limit for Bharti Airtel from 49% to 100%.
Crux of the Matter
RBI granted approval for FPls (Foreign Portfolio Investors)/Flls (Foreign Institutional Investors) to invest in up to 74% of the paid-up capital.
Currently, foreign ownership in Bharti Airtel is 44.28%
Bharti Airtel is seeking the government’s approval to raise ₹4,900 crores from SingTel and other overseas companies.
The decision comes at the time when there is a decline in promoter and promoter group holding in Airtel to 58.98% from 62.70%.
It is after the company raised $2 billion through a private placement of shares to investors including Citigroup, GIC, Fidelity, Goldman Sachs, BlackRock, Schroder, Warburg Pincus and Segantii Capita, reports say.
Bharti Airtel has pending dues of more than Rs35,000 crores to be paid to the government before a January 23 deadline for license fees and spectrum dues.
Curiopedia
Bharti Airtel Limited, also known as Airtel, is an Indian global telecommunications services company based in Delhi, India. It operates in 18 countries across South Asia and Africa, and also in the Channel Islands. Airtel is credited with pioneering the business strategy of outsourcing all of its business operations except marketing, sales and finance and building the ‘minutes factory’ model of low cost and high volumes. The strategy has since been adopted by several operators. It is the third-largest mobile network operator in India and the second-largest mobile network operator in the world with over 411.42 million subscribers. More Info
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