Bharti Space to Invest Rs.313 Crore in Eutelsat's Satellite Expansion
As part of the French satellite operator Eutelsat's 1.35 billion euros (about Rs.11,250 crore) capital raising strategy, Bharti Enterprises' space company, Bharti Space Ltd, will contribute 31.4 million euros, or roughly Rs.313 crore or $36 million.
As it works to solidify its position in the global space communications industry, the corporation plans to use the additional funding to reduce debt and increase investments in satellite constellations.
Eutelsat is increasing its capital through a combination of a 634 million euros (Rs.6,330 crore) rights offering and a 716 million euros (Rs.6,865 crore) reserve capital increase.
Bharti Space will take part in both phases of the fundraising campaign alongside other important investors, including the French government, shipping giant CMA CGM, and sovereign investor Fonds Stratégique de Participations (FSP). Subject to regulatory and shareholder clearances, the stock offering is anticipated to be finished by the end of 2025.
With a 24 percent market share, Bharti is already an investor in the Eutelsat Group.
With the financial commitment, French State will become the largest shareholder with a 29.99 percent interest in the company, while Bharti will hold about 18.7 percent of the company.
Notably, Bharti holds a 21 percent ownership in the combined company Eutelsat OneWeb.
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At 4 euro per share, Eutelsat is increasing its reserved capital, which is 32 percent more than the 30-day average share price of the firm on the Euronext Paris stock exchange. The investment commitments are contingent to shareholder approval at an extraordinary general meeting, which is anticipated to take place by the end of the third quarter of 2025.
The funding raise coincides with increased activity in the satellite internet market, particularly in India. The Indian government has granted OneWeb a license to begin offering satellite internet services. OneWeb is now a member of the Eutelsat Group. However, as the Department of Telecommunications has not yet allotted spectrum for these services, the implementation is still on hold.
The news of Bharti Airtel's cooperation with Elon Musk's SpaceX to introduce Starlink's satellite broadband service to India comes shortly after Bharti's investment. The action suggests that the firm is anticipating an increase in demand for internet connection in rural and distant areas by spreading its bets among both GEO and LEO satellite service providers.
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This week, Eutelsat inked a 10-year contract with France's Ministry of the Armed Forces under the Nexus program, which further strengthens its long-term view. The agreement, valued at up to 1 billion euros (Rs.9,999 crore), intends to improve European capabilities in secure space communications and combine military and civilian satellite resources.