Google is planning to invest up to $1 billion (roughly about. 7510 million) in Airtel in an attempt to improve Airtel’s digital offerings.
Indian telecom provider’s digital services, the companies said.
The investment comprises the $700 million (roughly the equivalent of Rs. 5,255 crores) equity stake of Airtel for the cost of Rs. 734 per share, and as high as $300 million (roughly around 2,250 crores) to implement commercial agreements and investments to expand Airtel’s services according to the companies.
The issue of shares is subject to shareholder and regulatory approval.
The problem comes just some months later than Airtel raised as much as the sum of Rs. 21,000 crore via a sale of shares to shareholders who are already shareholders.
Airtel shares rose 0.54 percent to 711 rupees following the announcement.
Google announced plans just two years back to invest $10 billion (roughly the equivalent of Rs. 75,060 crores) in India through its digitalization fund over the next five to seven years via tie-ups and equity transactions.
Conglomerate Reliance’s digital division Jio Platforms, Airtel’s competitor in telecom Jio, has received $4.5 billion (roughly 33,775 crores). 33.75 million) by Google at the end of July.
In exchange, Google, the US tech giant, was granted the Jio board.