Wednesday, August 23 2006 10:30 Hrs (IST) - World Time -

New Delhi: The Foreign Investment Promotion Board yesterday (Aug 22, 2006)approved the increase in both direct and indirect Foreign Direct Investment in Sunil Mittal company Bharti Airtel to 74 per cent.

"Clarifications with regard to direct and indirect holding of Vodafone International Holdings BV and Vodafone Mauritius and taking note of revised aggregate foreign holding", said the FIPB statement.

When contacted a Bharti spokesperson said there was no dilution in stake by the Indian promoters. The only difference is that Department of Telecom changed the counting pattern and now takes into account both direct and indirect investment.

Bharti telecom continues to be the single largest shareholder in Bharti Airtel with 45.38 per cent stake. Vodafone and Singtel have 5.62 per cent and 15.60 per cent respectively, direct stake in Bharti Airtel, while the FIIs hold 22 per cent and rest is held by NRIs, OCBs, Indian MFs, Indian FIs, Indian insurance companies and banks etc.

Vodaphone had last year picked up 10 per cent stake in Bharti Enterprises, giving them 5.62 per cent direct stake in Bharti Airtel with the rest as indirect.

Singtel s total stake in the company stands at 31 per cent with 15.60 per cent directly held and the rest indirectly. Since the government allowed increased FDI limit in telecom from 49 per cent to 74 per cent, it had made it clear that 74 per cent ceiling would include all types of investment, direct or indirect.