Bharti Airtel received approval to boost the percentage of overseas investment in the company to 100 per cent, a move which could help the third-largest mobile operator in India attract capital from outside the country.
In a stock market filing, the operator said the Department of Telecommunications gave it the green light to increase the limit of foreign direct investment (FDI) up to 100 per cent of its paid-up capital. The previous limit was set at 49 per cent, with the operator’s current non-domestic ownership at about 44 per cent.
Airtel issued shares in early January worth up to $2 billion and opened the sale of $1 billion in bonds to non-domestic investors, as it embarked on a massive fundraising effort to cover controversial fees demanded by the government.
In October 2019, the country’s Supreme Court ruled operators’ adjusted gross revenue (AGR) covers all revenue, including non-telecoms related activities. The decision burdens Airtel with INR355 billion ($4.99 billion) in additional licence and spectrum usage fees.Subscribe to our daily newsletter Back