Singapore-based operator SingTel has approached the Foreign Investment Promotion Board (FIPB) seeking approval to raise its stake in SingTel Global (India) Private Limited from 74 per cent to 100 per cent.
In case the move is approved by the FIPB, SingTel will be the first foreign telecom company to increase its investment in India following the Indian government?s decision to allow 100 per cent foreign direct investment (FDI) in the telecom sector.
Bharti Enterprises and Leela Lace Software Solutions Private Limited hold 9.9 per cent and 16.01 per cent stake respectively in SingTel Global (India) Private Limited. The other stakeholders in the company are SingTel Australia Holdings Private Limited (73.9999 per cent) and INS Holdings Private Limited (0.0001 per cent). SingTel Australia Holdings Private Limited is a wholly owned subsidiary of Singapore Telecommunications Limited.
Both Bharti Enterprises and Leela Lace Software Solutions Private Limited want to exit SingTel Global (India) Private Limited. With an aim to further consolidate its position in the long-distance business, SingTel is looking to acquire the remaining 26 per cent stake in the company.
While SingTel Global (India) Private Limited provides ILD services in India, it also holds a licence to offer national long distance services.
