Google's Stake in Voda-Idea

Google's Stake in Voda-Idea

US giant Google is in talks to buy a 5% stake in Vodafone-Idea owned by Vodafone PLC and Aditya Birla Group.


  The price of Vodafone-Idea on Thursday closed at Rs 16,724 crore. Google will invest Rs 836 crore at the Vodafone-Idea share price (Rs 5.82 per share).

According to the Financial Times, Google's promoter company Alphabet was also talking to Reliance Industries to buy a stake in Reliance Jio, but was left behind by investors like Facebook.

A Mumbai-based banker said that Google was looking to take a major stake in Reliance Jio but could not make it due to not getting the required share.

Google will also challenge the growing influence of Facebook and Jio by buying a stake in Vodafone-Idea.

  Whose share of the Vodafone-Idea in present time

Vodafone plc's stake in Vodafone-Idea, 44.39%

Aditya Birla Group holds 27.18% stake in Vodafone-Idea


Other companies hold 28.43% in Vodafone-Idea.

Vodafone PLC and Aditya Birla Group have refused to make fresh investment in Vodafone-Idea, given the pressure on the stock of Voda-Idea.


Whereas Vodafone PLC stated that the loss in Vodafone-Idea was due to the Supreme Court order against the company because the order was adverse to the Vodafone-Idea company.

Google's investment in Vodafone-Idea will be like Sanjeevani for the company as the company will have to pay Rs 53000 crore to the government under the Supreme Court order.

  However, the banker believes that this investment will not be very beneficial.  The company Vodafone-Idea will also have to attract other investors on its behalf only then it will be able to make its payments.

 
Google is investing in Vodafone Idea at a time when Reliance Jio is in talks with US tech giant Microsoft to sell 2.5% stake for around $ 2 billion.

On April 21, Reliance announced a 10% stake sale in Jio Platforms. In the last 1 month, Facebook, General Atlantic, Silverlake, Vista Equity Partners and KKR have bought 17.2% stake in the Jio platform for about Rs 78,562 crore.

 Reliance plans to list the Jio platform on the Nasdaq. For this, the company is continuously attracting other global investors.

In 2016, Jio started its telecom business in India. There were many telecom companies in the country even before the arrival of Jio. In a very short time, Jio Company has outpaced all other companies in the telecom sector.

Offers that attract customers from time to time by the Jio Telecom Company have a big hand in them. Due to this, many telecom companies had to consolidate their business. Idea and Vodafone had to merge their operations.

In the first week of May, Bharti Telecom, the promoter company of Bharti Airtel, has announced to raise Rs 8433 crore through sale of 2.75% stake in the telecom company as part of market buying.

The Bharti Group said in a statement that the stake sale was attended by a number of existing and new shareholders, as well as several major global mutual fund Saverin Wealth Fund multi-strategy funds and domestic institutional investors.

According to BSE data, Societe Generalea bought 3.53 crore shares at a price of Rs 561.1 per share and thus invested Rs 1,981 crore. Most of the shares of Bharti Airtel were sold at ₹ 562 price.

It will use the funds raised by Bharti Airtel to repay its loan.