Airtel set to be foreign owned

Reversing the buying trend, foreign portfolio investors turned net sellers in December with a net outflow of Rs 244 crore from the capital markets amid subdued economic data. Depositories data shows FPIs pulled out a net Rs 1,668.8 crore from equities, but invested Rs 1,424.6 crore on a net basis in the debt segment, resulting in a net outflow of Rs 244.2 crore.

New Delhi, Dec. 8: Bharti Telecom, a promoter of Bharti Airtel, has sought the government nod for Rs 4,900-crore investment from Singapore-based Singtel and other foreign entities, a move that would make Bharti Airtel, the country's oldest private telecom operator, a foreign entity.

The fund infusion will enhance foreign stakeholding in Bharti Telecom to over 50 per cent that will make it a foreignowned entity, an official source said. Sunil Bharti Mittal and his family own around 52 per cent stake in Bharti Telecom at present.

Bharti Telecom holds around 41 per cent stake in Bharti Airtel while foreign promoter entities hold 21.46 per cent stake in the telecom service provider. Public shareholders have around 37 per cent stake in Bharti Airtel.

"Bharti Telecom has applied for infusion of Rs 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. DoT is expected to approve this investment this month," the source said.

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.

Total foreign shareholding in Bharti Airtel is 43 per cent at present. With promoter firm Bharti Telecom becoming a foreign entity, foreign shareholding in the company will cross 84 per cent, the source said.

Bharti Airtel has already been in discussion with Singtel and other entities for fund infusion.

Bharti Airtel has already applied to raise FDI limit to 100 per cent in the company.