It will subsequently raise foreign shareholding to over 85 percent in Bharti Airtel from 43 percent at present
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Singapore-based telecommunications group, Singtel, may raise its stake in Bharti Telecom beyond 50 percent, reported The Economic Times.
This step will make the holding company a foreign-owned entity. It will subsequently raise foreign shareholding to over 85 percent in Bharti Airtel from 43 percent at present, the report stated.
Sunil Mittal family currently holds 52 percent and 41 percent stake in Bharti Telecom and Bharti Airtel, respectively. This will take away the ‘domestic’ tag from the holding company, leading to a reclassification as a ‘foreign’ investor.
Last month, Bharti Airtel sought government’s approval to increase foreign shareholding to 100 percent. This is being done to make way for potential future investors, apart from seeking investments from Bharti Telecom and Singtel, to revive growth.
Current Foreign Direct Investment (FDI) norms allow 49 percent foreign investment under the automatic route. But government’s approval is necessary if it is 50 percent or more.
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