Bharti Telecom, a promoter of Bharti Airtel, is seeking government approval for the infusion of Rs 4,900 crore investment from Singapore-based Singtel and other foreign entities.
The fund infusion will enhance foreign stakeholding in Bharti Telecom to over 50% that will make it a foreign-owned entity.
Bharti Telecom owns around 41 per cent stake in Bharti Airtel while foreign promoter entities hold a 21.46 per cent stake in the telecom firm, informed a source. At present Sunil Bharti Mital’s family owns around 52 per cent stakes in Bharti Telecom.
"Bharti Telecom has applied for infusion of Rs 4,900 crore in the company which includes investments from Singtel and some other foreign investors. With this Bharti Telecom will become a foreign entity as the majority stake will be held by overseas investors. DoT is expected to approve this investment this month," said, the source.
The Department of Telecom had earlier this year rejected Bharti Airtel's FDI application as the company had not provided clarity on the foreign investor.
With Bharti Telecom becoming a foreign entity, foreign shareholding in the company will cross 84 per cent, the source said. Bharti Airtel has already been in discussion with Singtel and other entities for fund infusion.
Bharti Airtel has said that 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.
Bharti Airtel has already applied to raise the FDI limit to 100 per cent in the company.