While currently, the government allows 100 per cent FDI in telecom companies, of which up to 49 per cent can be done through the automatic route, Idea has requested the government to increase it to 100%. At present, foreign investors hold around 27 per cent stake in Idea.
Idea said: "Application made to DIPP (Department of Industrial Policy and Promotion) for 100 per cent FDI in Idea."
Increasing FDI limit will help Idea as it is in the process of merging its telecom business with the Indian unit of British telecom major Vodafone. The merged entity will have the largest share in the Indian telecom segment. Vodafone may hold around 47.5 per cent stake in the merged entity.
Increasing FDI limit will help Idea as it is in the process of merging its telecom business with the Indian unit of British telecom major Vodafone. The merged entity will have the largest share in the Indian telecom segment. Vodafone may hold around 47.5 per cent stake in the merged entity.
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