scorecardresearch

Vodafone plans $2 bn investment to raise stake in India unit: Report

According to a report in the Financial Times, the British telecom major will file an application this month with the Foreign Investment Promotion Board to invest $2 billion to buy out minority shareholders in Vodafone India.

Britain's Vodafone Plc plans to invest as much as $2 billion to buy out minority shareholders in Vodafone India, the Financial Times reported on Monday.

The telecom major will file an application this month with the Foreign Investment Promotion Board (FIPB) to seek clearance for the investment, the report said, citing two people familiar with the situation.

Vodafone could not immediately be reached for comment.

In July, the government had approved raising the foreign investment limit in the telecom sector to 100 per cent from 74 per cent in a bid to lure capital inflows, prop up a sliding currency and boost growth.

The newspaper report said the size of the investment suggests that Vodafone will not up its stake to 100 per cent.

Vodafone is considering buying out some minority investors, including billionaire industrialist Ajay Piramal who holds 11 per cent stake in Vodafone India, the report added.

The British telecom major owns about 64 per cent of Vodafone India while 25 per cent is controlled by undisclosed minority shareholders, who are understood to include Analjit Singh, chairman of Vodafone India.