Bharti Telecom has applied for approval from Singapore’s Singtel and some other foreign companies to boost investment: Report
Bharti Airtel, the country’s largest telecommunications company, is on its way to becoming a foreign company. Bharati Airtel’s promoter Bharti Telecom has sought permission from the telecom department for foreign investment of Rs. Bharti Airtel is set to become a foreign telecommunication company if the company gets approval from the telecom department. If this happens, foreign shareholding in Bharti Telecom will go up by more than 5%. A news agency has provided information.
According to the report, Bharti Telecom has applied for approval from Singapore’s Singtel and some other foreign companies to boost investment. Bharti Airtel is expected to get approval from Bharti Airtel this month. Earlier, the telecom department had rejected the application of Bharti Airtel. Meanwhile, Bharti Airtel’s application was rejected as the name of the foreign investor was not clear at that time.
Currently, Bharti Telecom owns a 5% stake in Sunil Bharti Mittal and his family. Bharti Telecom owns 5% of Airtel’s shares. The foreign promoter holding is 8.5 percent. While 5% of the shares are held by ordinary investors. Bharti Airtel holds a 5% shareholding of foreign investors. With Bharti Telecom’s ownership going to foreign companies, the share of foreign investors in Airtel will increase to 5%.
According to the apex court order, the telecommunications department’s claim that Airtel, Vodafone and Idea companies failed to show fair revenue income has been upheld and the revenue arrears and penalties for the last three years have been paid to the tune of Rs. According to the government’s claim, the outstanding dues amounting to Rs 19.9 crore should be paid within three months, the apex court said. Notices demanding the same have been issued to these companies by the Telecom Department.
The Union Cabinet, while congratulating the telecom operators on the record-breaking loss, allowed them to delay the payment of sound charges for two years. However, the longer the amount is delayed, the longer these companies will have to pay interest.
The telecom company incurred a huge loss of Rs 23,045 crore in the July-September 2019 quarter. At the same time, the company had a profit of Rs 119 crore in the same quarter a year ago. Based on the court’s decision, the company will incur an additional burden of Rs 28,450 crore on account of the license fee and spectrum fee (SUC). The company said that this amount includes interest on principal amounting to Rs 6,146 crore, the interest of Rs 12,219 crore, a penalty of Rs 3,760 crore and penalty of Rs 6,307 crore.
Bharti Airtel said that even though it incurred a loss of Rs 23,045 crore after the extraordinary item, the company incurred a loss of Rs 1,123 crore if it removed this extraordinary item. At the same time, the company’s revenue from Indian business increased three percent year-on-year to Rs 15,361 crore.