Bahrain Telecommunications Company, also known as Batelco, said Sunday that it has upped its stake in Indian mobile telco, S Tel Communication to 42.7 percent from its earlier 36.8 percent, at an estimated $38.8 million.

The raise in stake represents the latest leg of the acquisition of stakes in S Tel Communications, which will ultimately end with Batelco owning 49 percent stake in the startup, and Sterling Group with the remaining 51 percent stake.

STel, which has won licenses to provide mobile services in six rural circles- Assam, Bihar, Himachal Pradesh, Jammu and Kashmir, North East, and Orissa, is expecting to

start its operations in the fourth quarter of this year, said Batelco CEO Peter Kaliaropoulos.

Earlier in April, Kaliaropoulos said that he is hoping to rake a full-year net profit of above 90 million Bahraini dinars ($238.7 million) if its Indian affiliate started operations in the fourth quarter and booked start-up costs of about 9 million dinars.

In the North East circle alone, S Tel is set to invest more than $400 million over the next three years.

Faced by intense competition in its domestic market, Batelco is looking to diversify its earnings by adding operations in Asia and Africa.

Countries where Batelco has extended its operations include Egypt, Jordan, Kuwait, Saudi Arabia, and Yemen.