Sistema Shyam seeks FIPB nod to increase foreign stake in it

Written by PTI | New Delhi | Updated: May 8 2014, 03:37am hrs
Russian conglomerate Sistema JSFC controlled telecom operator Sistema Shyam Teleservices has sought the government approval to raise foreign stake in the firm beyond the current 74 per cent.

"We hereby submit our application for seeking approval of the FIPB for effecting a change in the existing foreign shareholding and for increasing the total FDI in the company beyond 73.95 per cent...." Sistema Shyam Teleservices (SSTL) said in its application submitted to Foreign Investment Promotion Board (FIPB).

Sistema JSFC holds 56.68 per cent in SSTL, Russian government 17.14 per cent and 0.13 per cent other foreign entities.

SSTL has simultaneously sought approval for raising FDI in internet arm of the company Shyam Internet Services.

Sources that Sistema has plans to go solo but final details with its Indian partner is yet to be worked out.

The government in July, 2013 had allowed 100 per cent FDI in telecom companies.

SSTL is the second operator after Vodafone that has approached FIPB for raising FDI limit.

In April, British major Vodafone Plc acquired 100 per cent stake in Vodafone India in phased manner -- first 24.65 per cent held jointly by its non-executive Chairman Analjit Singh and his wife and then 10.97 per cent stake held by Piramal Enterprises, with total investment of Rs 10,142 crore.