Shares of Bharti Airtel jumped as much as 6 percent in trade on January 28 after the company announced a strategic partnership with US technology giant Google. However, they pared most of the gains to trade 0.7 percent higher at Rs. 711.8 on the National Stock Exchange at 09:34 AM.
Bharti Airtel will issue 71.2 million shares of the company to Google on a preferential basis at Rs. 734 apiece, which is a premium of 4 percent to the closing price on January 27. The preferential allotment of equity shares will see Google own a 1.28 percent stake in the country’s second-largest telecom operator, the company said in an exchange filing.
Besides the near $700-million stake purchase, Google will also invest up to $300 million towards implementing various commercial agreements which will include investments in scaling Airtel’s offerings.
“As a part of its first commercial agreement, Airtel and Google will work together to build on Airtel’s extensive offerings that covers a range of Android-enabled devices to consumers via innovative affordability programs,” Bharti Airtel said in a statement.