CCEA approves Vodafone Plc?s proposal to raise stake in its Indian subsidiary

The Cabinet Committee on Economic Affairs (CCEA) has approved UK-based operator, Vodafone Plc?s proposal to buy out the minority shareholders in its Indian unit, Vodafone India for Rs 101.41 billion.

Earlier, Vodafone Plc had proposed to raise stake in Vodafone India from 64.38 per cent to 100 per cent. Following the approval of the proposal, the Ajay Piramal-led Piramal Enterprises, which owns 10.97 per cent direct equity holding in Vodafone India, will receive Rs 89 billion. Another Rs 12.41 billion will be paid to Analjit Singh, founder-head, Max India Limited, who indirectly holds the remaining stake in Vodafone India.

The proposal from Vodafone Plc is the first deal as part of which a foreign telecom operator is raising its stake to 100 per cent in the Indian subsidiary, following the government?s decision to increase foreign direct investment in the telecom sector from 74 per cent to 100 per cent.