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Vodafone keen to fully own India arm
New Delhi, Oct 29, 2013, (DHNS)
The Vodafone Group has become the first telecom company to evince interest to wholly own its Indian unit after the government in July removed the 74 per cent limit on investment by foreign entities in Indian telecom service providers.
London-based Vodafone Group Plc has filed an application with the Foreign Investment Promotion Board to increase its stake in Indian subsidiary Vodafone India Ltd to 100 per cent from 64.38 per cent at an investment of Rs 10,141 crore.
"We have always said we would like to increase our holding and this further investment demonstrates Vodafone's long-term commitment to India," the company said.
Apart from Vodafone Group, Piramal Healthcare Ltd holds 11 per cent stake, Vodafone India Chairman Analjit Singh 6.2 per cent and about 18 per cent stake is held by independent investors.
The company also plans to provide additional funding to its Indian unit by subscribing to equity shares.
Vodafone Group had plans to list its Indian unit on the exchanges but has refrained from doing so citing unfavourable market conditions and lack of regulatory clarity.