Bharti hits 74 pc Foreign Direct Investment ceiling
Bharti Airtel, India's largest cellular operator, has hit the ceiling of 74 per cent Foreign Direct Investment.india Updated: Aug 06, 2006 16:55 IST
Bharti Airtel, India's largest cellular operator, has hit the ceiling of 74 per cent Foreign Direct Investment as permitted by the government with a change in the counting pattern taking both direct and indirect into account.
When contacted the company spokesperson confirmed that FDI in Bharti stands at little less than 74 per cent but said that there was no dilution in stake by the Indian promoters.
The only difference is that the Department of Telecom has changed the counting pattern and takes into account both direct and indirect.
Bharti Telecom, promoted by Sunil Mittal, continues to be the single largest shareholder in Bharti Airtel with 45.38 per cent stake. Vodafone and SingTel have 5.62 per cent and 15.60 per cent respectively direct stake in Bharti Airtel, while the FIIs hold 22 per cent and rest is held by NRIs, OCBs, Indian MFs, Indian FIs, Indian Insurance companies and banks etc.
Vodaphone had last year picked up 10 per cent stake in Bharti Enterprises, giving them 5.62 per cent direct stake in Bharti Airtel with rest as indirect, the company said.
Similarly, SingTel's total stake in the company stands at 31 per cent with 15.60 per cent directly held while rest through indirect manner.
Ever since the government allowed increased FDI limit in telecom from 49 per cent to 74 per cent, it had made it clear that 74 per cent ceiling would include all types of investment whether direct or indirect.
The other largest telecom company in India Hutchison-Essar has also announced that its FDI limit stands at 68 per cent as it was taken on record by the Foreign Investment Promotion Board (FIPB) recently.