industry

Bharti Telecom may raise equity from promoter group and Singtel


NEW DELHI: Bharti Telecom Ltd., the promoter of mobile phone company Bharti Airtel, may raise equity from its current promoter group – which may include its overseas entities – and SingTel in proportion to their holdings to retire debt, a move which may increase the foreign stake to beyond 50%.

“Even a marginal increase in foreign equity would take the foreign investment in Bharti Telecom above 50%, making it a foreign-owned entity. Once that happens, Bharti Telecom’ s entire stake in Bharti Airtel Limited will automatically be considered as Foreign Investment,” Bharti Airtel said in a statement to the stock exchanges Thursday.

This statement was in response to a news item titled “Singtel to raise holding in Bharti Telecom beyond 50%” published in Thursday’s edition of ET.

At present, Bharti Telecom’s 41% equity stake in Bharti Airtel is classified as ‘domestic’ shareholding as it is majority-owned (52%) by the Sunil Mittal-owned entities, including some overseas ones with Singtel currently owning 48%.

If Bharti Telecom becomes a foreign entity, overseas ownership in Bharti Airtel will rise to over 85%.

To make proposed changes compliant with FDI norms, Bharti Airtel has sought government nod to increase foreign shareholding to 100%.

“Bharti Airtel is committed to be compliant with regulatory regime for foreign investment and accordingly has applied for Foreign Investment for 100% to keep further headroom for FII / FPI investments as well,” the company said.

Airtel shares closed 1.8% higher at Rs 372.20 on the BSE on Thursday.





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