Google to invest in Bharti Airtel; stock jumps 6% before erasing gain

The deal includes investment of $700 million to acquire 1.28 per cent (shareholding including partly paid shares) ownership in Airtel and up to $300 million toward multi-year commercial agreements

Shares of Bharti Airtel rallied 6 per cent to Rs 752.80 on the BSE in Friday’s intra-day trade, after the company said its board  has approved raising funds to the tune of Rs 5,224 crore by issuing shares to Google on preferential issue basis. The telecom services provider will issue 71.18 million equity shares at price of Rs 734 per share.

Profit booking at higher levels saw the counter erase these gains. At 09:26 am, Bharti Airtel's stock traded flat at Rs 707.05, as compared to 0.81 per cent rise in the S&P BSE Sensex.

According to a