Vodafone gets FIPB approval to raise stake in Indian venture to 100 percent

UK-based telecom player Vodafone's Rs. 10,000 crores proposal to buyout minority shareholders in its Indian arm was approved on Monday by the Foreign Investment Promotion Board (FIPB).

Vodafone's Rs. 10,141 crores Foreign Direct Investment (FDI) proposal has been cleared, sources said after the meeting of FIPB in New Delhi.

(Also see: FIBP to decide on Vodafone, SingTel FDI proposals on Monday)

The telecom major, which holds a 64.38 percent stake in the Indian unit, will buy the remaining outstanding shares from minority shareholders like Ajay Piramal and Analjit Singh.

Piramal holds an 10.97 percent stake in India's second-largest telecom company by subscribers, while Singh, who is Vodafone India's non-executive chairman, holds 24.65 percent.

Vodafone Group Plc will pay Analjit Singh Rs. 1,241 crores and Piramal Enterprises Rs. 8,900 crores for their stakes in Vodafone India as part of a proposal.

CGP India Investments Ltd, an indirect Mauritian subsidiary of Vodafone International Holdings BV, had sought FIPB approval to buy the stake held by minority shareholders in Vodafone India Ltd.

The decision on the Vodafone application was deferred at the previous meeting as comments from the Ministry of Home Affairs were awaited.