Bharti Airtel Limited (the Company) has received the approval from Department of Telecommunications (DoT) for increasing the limit of foreign investment upto 100% of the paid up capital of the Company, the company said in a regulatory filing.
It may also be noted that subject to applicable laws, the aforesaid approval read together with the RBI approval dated July 03, 2014 granted to the Company allows the FPIs/FIIs to invest upto 74% of the paid up capital of the Company.
The approval comes few days before the company has to clear statutory liabilities of up to nearly ₹35,586 crore, of which ₹21,682 crore is licence fee and another ₹13,904.01 crore is spectrum dues (excluding the dues of Telenor and Tata Teleservices).
The approval would enable Bharti Airtel to raise more funds from foreign investors to pay for statutory dues, network expansion and for spectrum auction payments in case it bids.
Airtel has to clear statutory liabilities of up to nearly ₹35,586 crore, of which ₹21,682 crore are towards licence fee and another ₹13,904.01 crore are spectrum dues.
Bharti Telecom holds around 41% stake in Bharti Airtel while foreign promoter entities hold 21.46% stake in the telecom firm. Public shareholders have around 37% stake in the company."
Bharti Telecom has applied for infusion of ₹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 majority stake will be held by overseas investors.
The Department of Telecom had earlier in 2019 returned Bharti Airtel’s FDI application as the company had not provided clarity on the foreign investor.