Analjit Singh, Chairman of Vodafone India who is also a marginal shareholder in the firm, expects no obstacle to the British telecom major’s application to increase its risk in the local division to 100 per cent. Vodafone has prepared a proposal for the Foreign Investment Promotion Board (FIPB) to get an approval to increase its stake to 100 %. Vodafone very confidently mentioned that they do not foresee any hurdle in acquiring the full stake.
Analjit Singh told the reporters about the Vodafone application to raise the stake of Ajay Piramal and his group and said that it is expected that the board will approve it in the coming two months.
Singh, also the founder-chairman of the Max Group, embraces 6.24 % in Vodafone India. The British telecom major submitted an application to the FIPB in October month and waiting for approval to increase its stake to 100 % after administration permitted 100 % Foreign Direct Investment (FDI) in the telecom industry in September.
In February last year, Singh was selected non-executive chairman, stated that it has been only 2 weeks that the application has been submitted by Vodafone and he is hoping that in next 2-3 discussions it will be approved.
Ajay Piramal, the other minority shareholder, owns a bit more than 11 %. IDFC, a leading finance company and individual investors are the shareholders of 18.8 % in the firm.
In November 13 summit; FIPB didn’t take up the application of British telecom major. An executive said that all concerned departments and ministries have not given their comments, that means Vodafone application was not implemented,”
The takeover is expected to charge Vodafone Plc, the world’s major Telco, around Rs 10,500 crore. Singh said that it is finding the hurdles for the last 2-3 years in his group’s insurance business.