Bharti Airtel on Tuesday said it has received approvals for enhancing the foreign portfolio investment (FPI) limits for its subsidiary companies and hence will be initiating the process to revise its foreign investment limit to 100 per cent.
The development is pursuant to the FDI approval granted to it in January 2020 by the Department of Telecommunications (DoT). The company has now received necessary approvals for its relevant downstream investments.
Some of its subsidiary companies had been awaiting certain government/ regulatory approvals, which led to the MSCI rebalancing in August 2020 and significant outflows.
With this, the investors in the company can invest more, by buying more equity shares and increasing their stakes. The approval received by subsidiary entities now would allow Airtel to have foreign investment up to 100 per cent without its downstream entities becoming non-compliant with any norms.
“We believe developments on this front could help reverse the underperformance that followed the August 2020 rebalancing,” Airtel said in a statement.