Cabinet nod for Vodas Rs 10k-cr FDI

The author has posted comments on this articleAgencies | Feb 7, 2014, 02.43AM IST NEW DELHI: UK-based Vodafone on Thursday secured a Cabinet approval to buy out minority shareholders in its Indian arm for Rs 10,141 crore the single largest foreign investment in the country's telecom sector. After this, Vodafone India will be the first telecom operator to be fully-owned by a foreign firm.

"The Cabinet Committee on Economic Affairs has approved the proposal of CGP India Investment for increase in foreign equity in Vodafone India from 64.38% to 100%," an official statement said.

The Foreign Investment Promotion Board (FIPB) had on December 2013, cleared the proposal of CGP India, an indirect Mauritian subsidiary of Vodafone International Holdings.

Vodafone, which entered India in 2007 by buying Hutchison Whampoa's stake in Hutchison-Essar in a $11-billion deal, directly holds 64.38% stake in Vodafone India. "The approval would result in foreign investment of approximately Rs 10,141 crore being received in the country," the statement added.

Last year, the government had allowed 100% FDI into the telecom sector.

The telecom major will buy remaining outstanding shares from minority shareholders Ajay Piramal and Analjit Singh. agencies

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Cabinet nod for Vodas Rs 10k-cr FDI