Bharti Airtel to be part of February quarterly index review: MSCI

Bharti Airtel to be part of  February quarterly index review: MSCI

Index provider MSCI on Thursday said that Bharti Airtel will be a part of its February 2021 quarterly index review.

The NSDL has updated the foreign investment limit for Bharti Airtel to 100% from 49%.

“The proforma FOL (foreign ownership limit) and upward movement of the adjustment factor due to foreign room will be implemented as part of the upcoming February 2021 Quarterly Index Review,” said MSCI.

The MSCI quarterly review will be announced on February 9 and effective from March 1.

Abhilash Pagaria, Senior Manager, Edelweiss Alternative Research said in a recent note that the revision of FPI limit should lead to around $700 million worth of inflow in Bharti Airtel due to increase in MSCI weightage.

The company had got approval from the Department of Telecommunications to increase its foreign investment limit to 100% of the paid up capital in January 2020. However, some of its subsidiaries were awaiting approvals. As a result, there was a weightage drop in MSCI index rebalancing in August 2020 which caused significant outflows.

Bharti Airtel on Tuesday said that it has received approvals for its relevant downstream investments and it had initiating process to revise its FII limit to 100%.

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