FIPB defers Etisalat’s move to acquire majority stake

The Foreign Investment Promotion Board (FIPB) has rejected Etisalat’s proposal to raise its shareholding stake by 5.27 per cent in its Indian joint venture.  FIPB did not give a reason for not accepting Etisalat’s proposal. The Dubai-headquartered telecom operator already owns a 45 per cent stake in Etisalat DB, a new entrant in the Indian telecom space.

FIPB has recently approved of 24 proposals to bring in foreign direct investment of Rs 27.27 billion into Indian companies however, the decision on Tata Advanced Systems, GMR Airports, Etisalat and Essar Capital Holdings’ FDI proposals have been deferred.