India's Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) are undertaking due diligence to buy a stake in Zain, the Indian ambassador to Kuwait said in remarks published on Saturday.

Last week, the two state-run firms said they had not decided on whether to join a consortium that is buying a 46 per cent stake in Kuwaiti telecom Zain

'MTNL and BSNL are always looking for investment opportunities overseas to expand their operations. As for buying a stake in Zain group, the evaluation and due diligence is ongoing,' ambassador Ajai Malhotra said, according to al-Qabas newspaper.

The Indian embassy could not be reached for comment on Saturday.

Family conglomerate Kharafi Group, a major shareholder in Zain, has said it would sell a 46 per cent stake in Zain -- comprising its estimated 20 per cent holding plus that of other shareholders -- in a deal that would be worth around $13.7 billion.

A consortium of Indian telecom companies and a Malaysian investor signed an agreement on Tuesday to buy the stake.

Kharafi Group's vice president Badr al-Kharafi said on Tuesday the consortium is led by India's Vavasi Group and includes regional telecom companies BSNL and MTNL, and Malaysian billionaire Syed Mokhtar al-Bukhary. – Reuters