The Foreign Investment Promotion Board (FIPB) Monday approved a proposal of British telecom major Vodafone Group Plc to increase its stake to 100 percent in the Indian holding with an investment of around Rs.10,141 crore ($1.7 billion).
Vodafone would now need final approval from the union cabinet.
“We are pleased to have obtained FIPB approval to increase our stake in Vodafone India. The Cabinet Committee on Economic Affairs still has to endorse this decision before either transaction can take place,” the company told IANS in an email reaction.
Vodafone entered India in 2007 by buying Hutchison Whampoa’s assets in a $11 billion deal. It directly owns 64.38 percent in its India unit.
In August 2013, the country allowed 100 percent foreign direct investment (FDI) in telecommunications sector, which would facilitate players like Vodafone Group Plc to fully own their India units.
Earlier in October this year, Vodafone said it has filed an application with the FIPB to raise stake in the Indian venture from 64.38 to 100 percent.
The remaining stakes are with minority shareholders, which also includes industrialist Ajay Piramal who holds 11 percent in the Indian holding.
FIPB approves Vodafone plan to fully own India business added by Indian newspaper Sydney on
View all posts by Indian newspaper Sydney →