- Bharti is initiating the process to revise its foreign investment limit, as notified to its depositories, to 100 percent with immediate effect
The debt-ridden telecom operator Bharti Airtel with the third-highest user base in India has been trying hard to get its foot back on the track. Recently, the company proclaimed to amend its FDI to 100 percent with immediate effect. To meet the same, it has finally got the sanction by the concerned authority for its relevant downstream investments. The process ultimately helped the operator to witness a gambol of 6.4 percent share at the Bombay Stock Exchange (BSE).
Back in February this year, the debt-ridden operators paid a partial amount out of Rs 1.47 lakh crore. Tata Group and Vodafone have already paid their loans, while Airtel paid Rs 10,000 crore. Airtel still has to pay an amount of Rs 25,586 crores to the government.
According to an exclusive report of ET Telecom, Airtel stock was trading at Rs. 585.25 around noon, up nearly 3.5 percent. In accordance with the FDI approval, given to the operator by the Department of Telecommunications (DoT) on Jan 20, 2020, it has also got the approvals for its relevant downstream investments. The telco has mentioned this during its exchange filing at the BSE on Tuesday.
“Bharti is initiating the process to revise its foreign investment limit, as notified to its depositories, to 100% with immediate effect,” Edelweiss Alternative Research said in a note.
The brokerage firm clearly stated that its jump of shares and approvals would help Bharti Airtel to grab $600-700 million in the coming few years. Edelweiss Alternative Research added that the MSCI adjustment date (of Bharti Airtel’s weight in the MSCI Emerging Market Index) is February 28, 2021, according to a report published by ET Telecom.