Investments lined up for Bharti, Hutch, Idea

Singapore Technologies Telemedia (STT) and TM International, which hold 47 per cent stake in Idea Cellular, today said they would evaluate the option of purchasing additional shares in the company.

Foreign investors like Singapore Telecommunications are also likely to raise their stake in Bharti Tele-Ventures.

At present, Singapore Telecommunications owns 28 per cent in the company, and private equity giant Warburg Pincus has a has a 15.17 per cent stake. FIIs are estimated to hold 20 per cent in Bharti.

For Hutch, with its IPO lined up, the move will hasten its plan to issue a sponsored American Depository Receipt issue, an analyst tracking the sector said.

The telecom industry cheered the government's decision to hike the sectoral cap in telecom from 49 per cent to 74 per cent.

"With increased foreign capital now being allowed, the move will provide the Indian telecom industry the much-needed impetus to deliver on its ambitious target of reaching between 200 to 250 million-phone connections over the next three years," said Bharti joint managing director Rajan Mittal.