FDI Limit of Bharti Airtel now up to 100 Percent: DoT

Delhi based global telecommunication service provider, Bharti Airtel recently got approval from the Department of Telecommunications (DoT) to increase the Foreign Direct Investment (FDI) limit up to 100% of the paid-up capital from the earlier limit of 49%. The company already received permission from the Reserve Bank of India(RBI) for overseas portfolio investors to invest up to 74% in Bharti Airtel. At a time when the company is facing heated tariff war with its market competitors, the move that will now allow them to raise more capitals from foreign investors will provide much-needed relief for the company as Singapore based Singtel, which owns 35 percent shares in the company will now be able to increase its stake further.

A company official stated on Tuesday that the overseas portfolio investors were able to invest up to 74 percent in the company earlier as well as permitted by the Reserve Bank of India. As for the 5G services, the Department of Telecommunication prepares to conduct the first spectrum auction by the month of April this year, the move will allow Bharti Airtel to raise much-needed funds.

Month: Current Affairs - January, 2020