According to stock market sources, various funds of US-based Capital International have picked up more than half of the 11.2 crore shares sold by Warburg on Monday.

Even after the sale, Warburg, an original investor in the Indian telecom service major since 1999, maintains six percent equity in Bharti Tele-Ventures, one of the largest telecom service providers in India with about 11 million customers as of December 2004.

"Today's deal of $560 million is the biggest in Indian history and shows the interest in Indian telecom sector and Bharti. It also reflects the depth and maturity of Indian stock markets," said Bharti Joint Managing Director Akhil Gupta after the sale.

The sale by Warburg came less than a week after Bharti Tele-Ventures Promoter Sunil Mittal sold his entire personal shareholding in the company.

The Indian government had recently raised the cap of foreign direct investment (FDI) in telecom sector from 49 to 74 percent.