Bharti Airtel's shareholders nods preferential issue to Google; stock skids 1.50%

28 Feb 2022 , 10:57 AM

Bharti Airtel announced that its shareholders have approved the issue of equity shares on a “preferential basis” to Google post its recent purchase in the company for $700 million. The company is also lending support to the telco’s plan to infuse a whopping Rs 1.17 lakh-crore in related-party expenses, including operating expenses through its Joint Venture with Indus Towers.

This resolution was approved with a 99.99% majority at Airtel’s Extra-Ordinary General Meeting (EGM).

In January 2022, Google has announced an investment of up to $1 billion in Bharti Airtel. Out of this, $700 million would be for a 1.28% stake in the company, and the balance of $300 would be infused over five years as part of commercial pact between the two companies.

Google’s investment in Airtel will be a part of $10 billion ‘Google for India Digitization Fund’.

Airtel is the second telecom operator to receive funding from google.

Bharti Airtel was trading 1.5% down in today’s trade at Rs678.35 against its previous closing price of Rs688.65. It touched day’s high and low of Rs681 and Rs666.45 respectively.