Bharti seeks govt. nod for FDI

Bharti Telecom, a promoter of Bharti Airtel, is on the verge of becoming a foreign entity as it seeks government nod for the infusion of Rs 4,900 crore investment from Singapore-based Singtel and other foreign entities.

While Sunil Bharti Mittal and his family currently own around 52 per cent stake in Bharti Telecom at present, the fund infusion will enhance foreign stakeholding in Bharti Telecom to over 50 per cent, thus making it a foreign-owned entity.

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.

A source said that DoT is expected to approve this investment this month.

The Department of Telecom had earlier this year returned Bharti Airtel’s FDI application as the company had not provided clarity on the foreign investor.

Bharti Airtel has already been in discussion with Singtel and other entities for fund infusion. The company in August had informed stock exchanges that Bharti Telecom in order to retire some debt may seek equity from its existing promoter group which may include overseas entity and Singtel in proportionate to its holding. 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.