Cabinet approves Vodafone's Rs.10,141 crore FDI proposal
Posted on Feb 06 2014 | IANS
New Delhi, Feb 6 : The union cabinet Thursday approved a proposal of British telecom major Vodafone to buy out minority shareholders in its Indian arm for Rs.10,141 crore (USD 1.7 billion) to raise its stake to 100 percent, an official statement said here.
"The approval would result in foreign investment of approximately Rs. 10,141 crore being received in the country," said the statement after a meeting of the Cabinet Committee on Economic Affairs.
In December 2013, the Foreign Investment Promotion Board (FIPB) approved a proposal of Vodafone Group Plc to increase its stake in the Indian holding to 100 percent.
Vodafone entered India in 2007 by buying Hutchison Whampoa's assets in a USD 11 billion deal. It directly owns 64.38 percent in its India unit.
In August 2013, India allowed 100 percent foreign direct investment (FDI) in telecommunications sector, which would facilitate players like Vodafone Group Plc to fully own their India units.
In October this year, Vodafone said it has filed an application with the FIPB to raise its stake in the Indian venture. The remaining stakes are with minority shareholders, which also includes industrialist Ajay Piramal who holds 11 percent.