Bharti Airtel earlier had an FDI cap of up to 49 per cent. (Image source: Reuters)
Shares of Bharti Airtel climbed to a 52-week high on the BSE and National Stock Exchange (NSE) during the intraday trade on Wednesday after the telecom firm said that it has received the approval of the Department of Telecom (DoT) for raising foreign direct investment (FDI) in the company to 100 per cent.
The company earlier had an FDI cap of up to 49 per cent.
The scrip of the telecom company rose as much as 2.47 per cent to Rs 524.00 on the BSE while on NSE it climbed 2.34 per cent to Rs 523.75, both 52-week high in their respective bourses. After a see-saw session, the stock ended 0.59 per cent higher at Rs 514.35 on the BSE and 0.55 per cent higher at Rs 514.55 on NSE.
In terms of trade volumes, over 4.43 lakh shares of Bharti Airtel were traded on the BSE during the day, and over 1.99 crore shares exchanged hands on the NSE.
In an exchange filing to the BSE, Bharti Airtel wrote, "the Company has received the approval from Department of Telecommunications (DoT) vide its letter dated January 20, 2020 for increasing the limit of foreign investment upto 100 per cent of the paid up capital of the Company."
The country's oldest private telecom enterprise also has the approval of the Reserve Bank of India (RBI) that allows the foreign investors to hold up to 74 per cent stake in the company, the filing said.
The approval comes few days before the company has to clear statutory liabilities of up to nearly Rs 35,586 crore, of which Rs 21,682 crore is licence fee and another Rs 13,904.01 crore is spectrum dues (excluding the dues of Telenor and Tata Teleservices).