RBI permits FIIs to acquire up to 49% stake in Idea Cellular

Reserve Bank of India (RBI) has allowed foreign institutional investors (FIIs) to buy up to 49% stake in telecom operator Idea Cellular. The FII limit in the company was 24% earlier.

The decision to increase the FII limit in the company has come after passage of resolution at the board of directors’ level and a special resolution by the shareholders for enhancing the limit from 24% to 49%. FIIs held 19.51% share in the company as of quarter ended March 2014.

Idea Cellular, an AV Birla group company, provides Global System for Mobile communications (GSM)-based wireless service at the pan-India level, it is present in all 22 telecom circles.