Kotak Mahindra Bank founder Uday Kotak called Google-parent Alphabet Inc.'s $80 billion fundraise a "wake up call" for listed companies in India, through a post on social media platform X on Tuesday.
Drawing a parallel between the financial health of Google and Indian companies, Kotak pointed out that the Sundar Pichai-led tech titan is not only a cash surplus firm, but has net profits and a market capitalisation of all Indian listed companies combined.
"Google which is cash surplus, just announced an additional capital raise of $80 bn. Google annual profit is $160 bn, last quarter $62 bn, and market cap $4.5 trillion. That is close to total profits and market cap of all Indian listed companies put together," he highlighted in the post.
He remarked that the stock sale is a wake up call for companies to get back into business and invest in the future, irrespective of what the present looks like.
"It's a wake up call to all companies to invest into the future, whatever the present maybe. Now that IPL is done and dusted, time for India to focus on business of business," the veteran banker underlined.
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Alphabet announced a $80 billion stock sale earlier in the day, including an investment deal with Berkshire Hathaway Inc., to fund its grand artificial intelligence spending plans.
"Alphabet intends to use the net proceeds from the concurrent underwritten public offerings and the concurrent private placement for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute," it said in a press release on monday.
The undertaking includes a $40 billion at-the-market program to sell shares from time to time beginning in the third quarter, according to the press release.
Google is also offering $30 billion in underwritten offerings of shares and mandatory convertible preferred stock, as well as the $10 billion deal with Berkshire.Taken together, transactions make up one of the largest equity deals of all time.
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