The Foreign Investment Promotion Board (FIPB) has approved Vodafone Group’s acquisition of around 10% interest in Bharti Tele-Ventures Ltd. (BTVL), India’s largest private sector telecom company.

Vodafone, through Vodafone Mauritius Ltd., has contracted to subscribe shares in Bharti Enterprises, giving it a beneficial stake in BTVL of 4.4%. In addition Vodafone, through Vodafone International Holdings BV, has also picked up 5.65% stake from Warburg Pincus, thereby taking the total beneficial interest in BTVL to around 10%. Vodafone has made a total investment of approximately USD 1.5 billion to acquire around 10% interest in BTVL, including the acquisition of shares held by Warburg Pincus. Bharti Enterprises maintains a controlling interest of 45.9% in BTVL through its subsidiary, Bharti Telecom Ltd. With the final sale of its stake, Warburg Pincus has now completely exited its position in BTVL.
Interestingly, Vodafone has obtained FIPB permission to acquire up to 49% stake in Bharti Enterprises (the closely-held holding company of the Mittal family), thus clearly indicating Vodafone’s desire to increase its stake in BTVL.

BTVL is one of India's leading private sector providers of telecommunications services with an aggregate of 15.13 million customers as of end of September 2005, of which approximately 14.07 million are mobile phone customers. The company is the only operator to provide mobile services in all the 23 circles in India. The company also provides telephone services and Internet access in 15 circles.