Reliance Tele gets FIPB nod to divest 74%

The Foreign Investment Promotion Board (FIPB) has cleared an application enabling Reliance Telecom, a Reliance Anil Dhirubhai Ambani group company, which runs the GSM services business, to divest up to 74 per cent equity to foreign investors.

The government also allowed up to 74 per cent foreign direct investment in Reliable Internet Services, a Ambani company which runs internet services in Kolkata, again up to 74 per cent.

The group had earlier taken permission from the FIPB to divest up to 74 per cent stake to foreign investors in Reliance Communications, the company which runs the group's CDMA operations.

The move paves the way for Anil Ambani to rope in strategic and financial investors in the GSM business-which has been declared as the new focus and growth area of the group's telecom strategy.