Bharti Enterprises’ space arm, Bharti Space Ltd, will invest ₹313 crore in French satellite operator Eutelsat as part of a larger capital raising initiative. This investment aims to boost global connectivity and reinforce Eutelsat’s financial stability.
Key Highlights
- France emerges as Eutelsat’s top shareholder, emphasizing Europe’s focus on satellite infrastructure.
- Eutelsat plans to expand LEO and GEO satellites, enhancing European space independence.
- Bharti’s investment supports satellite expansion, especially LEO constellations, in the evolving satellite internet ecosystem.
Objectives and Aim
- Support satellite expansion, particularly LEO constellations, for global connectivity.
- Reduce Eutelsat’s debt burden and strengthen its financial stability.
- Build a European sovereign space network with military and civilian satellite capabilities.
- Maintain Bharti’s presence in the satellite internet ecosystem.
Fundraising Details
- Total Capital Raise: €1.35 billion (₹11,250 crore approx.).
- Structure:
- Reserve Capital Increase: €716 million (₹6,865 crore).
- Rights Issue: €634 million (₹6,330 crore).
- Bharti’s Contribution: €31.4 million (₹313 crore).
- Other Key Investors: French Government, CMA CGM, Fonds Stratégique de Participations.
- Pricing: Reserve capital issued at €4 per share—32% premium over 30-day average.
Impact on Shareholding
- Bharti’s Stake:
- Before fundraise: 24%
- After fundraise: Estimated to drop to 18.7%
- French Government Stake: Will increase to 29.99%, becoming the largest shareholder.
Strategic Significance
- Eutelsat aims to integrate 35 GEO and 600+ LEO satellites to become Europe’s leading satellite operator.
- A 10-year €1 billion contract with France’s Ministry of Armed Forces under the Nexus Program secures LEO capacity.
- Bharti’s alignment with Eutelsat-OneWeb and partnership with Elon Musk’s Starlink for satellite internet in India.
Summary/Static Details
- Invested Amount: €31.4 million / ₹313 crore
- Eutelsat’s Fundraise: €1.35 billion (₹11,250 crore)
- Shareholding Impact (Bharti): Drops from 24% to ~18.7%
- France’s Stake in Eutelsat: Rises to 29.99% (largest shareholder)
- Satellite Strategy: GEO + 600+ LEO constellation
- Military Deal with France: €1 billion over 10 years (Nexus Program)
Key Takeaways for Competitive Exams
- Bharti Space Ltd to invest ₹313 crore in Eutelsat for satellite expansion.
- Eutelsat aims to strengthen European space independence through LEO and GEO satellites.
- The investment supports global connectivity and reinforces financial stability.
- Bharti’s stake in Eutelsat expected to drop post-fundraising, with France becoming the largest shareholder.
- Strategic partnerships and contracts position Eutelsat as a key player in the satellite industry.
