Airtel allots 7.1 crore equity shares to Google for 1.2% stake, stock rises 2%

Telecom operator Bharti Airtel has allotted over 7.1 crore equity shares to internet major Google for Rs 734 apiece.

The allotment is part of Google's commitment to invest USD 1 billion with Airtel, which included equity investment in the company worth USD 700 million, about Rs 5,224 crore, Airtel said in a regulatory filing.

"The special committee of directors for preferential allotment of the company has at its meeting held today i.E, July 14, 2022, approved the allotment of 71,176,839 equity shares of the face value of Rs 5 each fully paid up, on preferential basis to Google International LLC (Google) at an issue price of Rs 734 per equity share," Airtel said.

Google made the investment as part of its USD 10-billion India Digitization Fund.

Out of the total investment with Airtel, USD 300 million was earmarked for implementing commercial agreements, which include investments in scaling Airtel's offerings that covers a range of devices to consumers via innovative affordability programmes as well as other offerings aimed at accelerating access and digital inclusion across India's digital ecosystem.

"Google will hold approxiamtely 1.2 percent of the total post-issue equity shares of the company-- approximately 1.17 percent on fully-diluted basis," the filing said.

Google has also invested Rs 33,737 crore (about USD 4.5 billion) to buy 7.73 percent stake in Jio Platforms just a couple of days after it made an announcement about the India Digitization Fund.

Meanwhile, Airtel share price jumped two percent in early trade on Friday. At the time of filing this report, the scrip was at Rs 655 a piece on the NSE and Rs 654 on the BSE.

(With PTI Inputs)