Bharti Airtel also recently embarked on a fundraising exercise, the proceeds from which will be used by the company to clear its AGR dues.
The Department of Telecommunication (DoT) has approved Bharti Airtel's application to increase the limit of foreign investment up to 100 percent of the paid-up share capital of the company. Earlier, the allowed quota was r 49%. This is going to help the telco bring in more overseas funds.
"The Company has received the approval from Department of Telecommunications (DoT) vide its letter dated January 20, 2020 for increasing the limit of foreign investment upto 100 percent of the paid up capital of the Company," Bharti Airtel said in a filing to the exchanges.
It added in the statement that the approval, read together with the RBI approval dated July 3, 2014, granted to the company allows Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs) to invest up to 74 percent of the paid up share capital of the company.
Foreign Domestic Investment (FDI) is usually allowed via the automatic route in most sectors barring a few like defence, telecom, media, pharmaceuticals and insurance. In these sectors, government approval is required for foreign investors looking to put their money in the company.
Under the government route, foreign investors are required to seek prior approval from the respective ministry or department while under the automatic route, all they have to do is inform the Reserve Bank of India (RBI) after the investment has been made.Bharti Airtel also recently embarked on a fundraising exercise, the proceeds from which will be used by the company to clear its adjusted gross revenue (AGR) dues. The company has a liability of nearly Rs 35,586 crore in additional statutory dues following the Supreme Court's ruling on the AGR liabilities of telecom players in the country.
Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.