Idea seeks government nod for raising FDI limit to 100%
New Delhi: Telecom operator Idea Cellular has approached the government for raising foreign direct investment (FDI) level in the company to 100%.
“Application made to DIPP (Department of Industrial Policy and Promotion) for 100% FDI in Idea,” the company said in an investor presentation.
Foreign investors hold around 27% stake in Idea, as per shareholding pattern of the company till December 2017.
At present, 100% FDI is allowed in telecom companies, of which up to 49% can be done through the automatic route. The inflow of overseas investment beyond that level requires government approval because of security reasons.
Idea Cellular is in the process of merging its telecom business with the Indian unit of British telecom major Vodafone.
As per latest data published by sector regulator Trai, Idea and Vodafone jointly have over 40 crore mobile subscribers and together account for the largest share in the Indian telecom segment.
Vodafone is expected to hold around 47.5% stake in the merged entity and rest will be owned by Idea and its promoter Aditya Birla Group.