Bharti Telecom is the single-largest shareholder in Bharti Airtel with about 41% equity stake, according to the BSE data. Sunil Bharti Mittal and his family currently own around 52% stake in Bharti Telecom. “Bharti Telecom Limited (Promoter of Bharti Airtel Limited), to retire some debt may seek equity from its existing promoter group (which may include its overseas entities) and SingTel in proportionate to its holding,” Bharti Airtel said in response to an email query.

“Even a marginal increase in foreign equity would take the foreign investment in Bharti Telecom above 50 per cent making it a foreign-owned entity. Once that happens, Bharti Telecom’s entire stake in Bharti Airtel Ltd will automatically be considered as Foreign Investment,” Airtel said. Foreign shareholding in Bharti Airtel is 43% at present and after the proposed SingTel investment, the total foreign stake would increase to around 85%.

Sources said Bharti Airtel for the second time has applied for 100% Foreign Direct Investment (FDI) approval offering clarity on the proposed investment. The Department of Telecom had earlier this year rejected Bharti Airtel’s FDI application as the company had not provided clarity around the foreign investor. “Bharti Airtel is committed to be compliant with regulatory regime for foreign investment and accordingly has applied for Foreign Investment for 100% to keep further headroom for FII/FPI investments as well,” Airtel said.

With the proposed investment, SingTel may hold around 52% in Bharti Telecom which will effectively enhance foreign stake holding in Bharti Airtel to around 85% from 43% at present. SingTel, at present, holds around 35% stake in Bharti Airtel. Airtel’s consolidated net debt stood at Rs 1,16,645.8 crore as on June 30, 2019.