Bharti Telecom seeks nod for Rs4,900-cr FDI to make it foreign
09 December 2019
Bharti Telecom promoter Bharti Airtel has sought government nod for Rs4,900 crore investment by Singapore-based Singtel and other foreign entities, thereby raising foreign stakeholding in Bharti Telecom to over 50 per cent and making it a foreign-owned entity.
Sunil Bharti Mittal and his family own around 52 per cent stake in Bharti Telecom, at present.
Bharti Telecom holds around 41 per cent stake in Bharti Airtel while foreign promoter entities hold 21.46 per cent stake in the telecom firm. Public shareholders have around 37 per cent stake in the company.
The fund infusion will enhance foreign stakeholding in Bharti Telecom to over 50 per cent that will make it a foreign-owned entity, PTI cited an official source aware of the development as saying.
With promoter firm Bharti Telecom becoming a foreign entity, foreign shareholding in the company will cross 84 per cent, the report said.
Public shareholders have around 37 per cent stake in the company. “Bharti Telecom has applied for infusion of Rs4,900 crore in the company, which includes investments from Singtel and some other foreign investors. With this, Bharti Telecom will become a foreign entity as majority stake will be held by overseas investors. DoT is expected to approve this investment this month," the report quoted the source as saying.
The Department of Telecom had earlier this year returned Bharti Airtel’s FDI application for want of clarity on the foreign investor.
Bharti Airtel board last week approved a proposal to raise $3 billion through QIP, stake sale and debt papers as the company owes AGR dues of Rs43,000 crore to the government.
The company will launch one or more QIPs or offer for sale of equity shares or a combination of similar offers to raise $2 billion. Rest $1 billion will be raised through debentures and bonds.