Bharti Telecom has sought the government approval for infusion of ₹4,900 crore foreign investments from Singapore-based Singtel and other overseas entities. Bharti Telecom is the promoter of India’s oldest private telecom operator Airtel. Airtel may become a foreign firm after getting the nod for fund infusion.
If the government approves the proposed fund infusion, the foreign stake-holding in Bharti Telecom will cross the limit of 50 per cent, eventually leading the telecom giant to become a foreign-owned company.
Sunil Bharti Mittal and his family have around 52 per cent stake in Bharti Telecom at present. Bharti Telecom holds around 41 per cent stake in Bharti Airtel while the foreign promoter entities hold 21.46 per cent stake in the telecom firm. Public shareholders hold 37 per cent stake in the company.
As Bharti Telecom has applied for infusion of Rs 4,900 crore in the company which includes investments from Singtel and other foreign investors, the major part of the stake will pass into the hands of overseas investors.
The Department of Telecom’s (DOT) plays an important role in approving the fund infusion from foreign entities in the telecom sector. Earlier this year, the department had rejected Bharti Airtel’s FDI investment plea on the ground of lacking clarity of the foreign investors. The sources confirm that the Department of Telecom could approve this time the investment by the end of this month.
Once the FDI bid gets the nod from the government, Bharti Telecom will become a foreign entity and the overseas shareholding in Airtel will cross 84 per cent, confirms the source.