Telecom operator Bharti Airtel on Thursday said it has allotted over 7.1 crore equity shares to internet major Google for Rs. 730 apiece.
The allotment is part of Google‘s commitment to invest $1 billion (nearly Rs. 8,000 crore) with Airtel, which included equity investment in the company worth $700 million (nearly Rs. 5,600 crore), Airtel said in a regulatory filing.
“The special committee of directors for preferential allotment of the company has at its meeting held today on July 14, 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. 730 per equity share,” Airtel said.
Google made the investment as part of its $10 billion (nearly Rs. 79,900 crore) India Digitisation Fund.
Out of the total investment with Airtel, $300 million (nearly Rs. 2,400 crore) 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. 33,700 crore to buy 7.73 percent stake in Jio Platforms just a couple of days after it made an announcement about the India Digitisation Fund.
The deal between Google and Airtel was recently approved by the Competition Commission of India (CCI) allowing Google’s proposed acquisition of a minority stake in telecom major Bharti Airtel. The deal has been cleared on the basis of modifications offered by the acquirer, according to an official release.