The Cabinet Committee on Economic Affairs on Thursday gave its nod to Vodafone’s proposal to buy out minority shareholders in its India unit.
 
The British telecom company Vodafone had proposed to raise stake in its Indian arm to 100 per cent, for Rs 10,141 crore, from 64.38 per cent at present.
 
“The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of CGP India Investment Limited for an increase in foreign equity in Vodafone India Limited (VIL) from 64.38 per cent to 100 per cent. The approval would result in foreign investment of about Rs.10,141 crore being received in the country,” an official statement said.
 
The Ajay Piramal-led Piramal Enterprises, which owns 10.97 per cent direct equity holding in Vodafone India, will get Rs 8,900 crore, a premium of about 51 per cent for its stake, more than double of what it had expected (reportedly 17-20 per cent). The remaining Rs 1,241 crore will go to Analjit Singh, founder-head of Max India Ltd, who indirectly holds the remaining stake.