As per industry sources, Bharti Airtel has received approvals for enhancing the foreign portfolio investment (FPI) limits for its subsidiary companies. Following this, the telco will be initiating the process to revise its foreign investment limit to 100 per cent.
The development is pursuant to the foreign direct investment approval that the operator had received from the Department of Telecommunications (DoT) in January 2020. With this, Airtel now has all the necessary approvals for its relevant downstream investments.
As per sources, some of Airtel’s subsidiary companies had been awaiting certain government/ regulatory approvals, which led to the MSCI rebalancing in August 2020 and significant outflows.
Following the recent approvals, the investors can put in more capital in the company by buying more equity shares and increasing their stakes. The approval received by subsidiary entities would enable Airtel to have foreign investment up to 100 per cent without its downstream entities becoming non-compliant with any norms.