100% FDI approval in subsidiaries for Bharti Airtel; shares jump by 6%
Bharti Airtel, on Tuesday, said it has received regulatory approval to raise foreign direct investment limit to 100% in its downstream companies. It also informed the exchanges about initiating the process to revise its foreign investment limit, as notified to its depositories, to 100% with immediate effect. Soon after this announcement, the stock surged as much as 6.3 per cent to its day’s high of Rs 601.8 per share on the BSE.
“Further to our intimation dated January 21, 2020, we wish to inform you that in compliance of the FDI approval dated January 20, 2020, granted to the company by the Department of Telecommunications, the company has received approvals for its relevant downstream investments. Accordingly, the company is initiating the process to revise its foreign investment limit, as notified to its depositories, to 100 per cent with immediate effect,” Airtel said in a BSE filing.
Airtel had received the approval from the DoT on January 20, 2020, for increasing the limit of foreign investment up to 100% of the paid-up capital of the company. The approval received by subsidiary entities now would allow Airtel to have foreign investment up to 100%, without its downstream entities becoming non-compliant with any norms.
As on September 30, the company’s promoters held 56.23% shares and 43.74% share was held by the public.