The proposal of CGP India Investment Ltd for increasing foreign equity in Vodafone India Ltd is listed on the agenda for the meeting of Cabinet Committee on Economic Affairs, said the report.
The Foreign Investment Promotion Board had on December 30, 2013, cleared the proposal of CGP India, an indirect Mauritian subsidiary of Vodafone International Holdings BV, to hike stake to 100 per cent from the present 64.38 per cent.
Since the proposal was worth more than Rs 1,200 crore it had to be referred to the Cabinet. The telecom major, which holds a 64.38 per cent stake in the Indian unit, will buy remaining outstanding shares from minority shareholders like Ajay Piramal and Analjit Singh.
Piramal holds an 10.97 per cent stake in India's second- largest telecom company by subscribers, while Singh, who is Vodafone India's non-executive chairman, holds 24.65 per cent.
Vodafone Group Plc will pay Analjit Singh Rs 1,241 crore and Piramal Enterprises Rs 8,900 crore for their stakes in Vodafone India as part of the proposal.
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