NEW DELHI — Veteran banker Uday Kotak said Alphabet Inc.’s planned $80 billion fundraising effort should serve as a wake-up call for Indian companies, arguing that businesses must invest more aggressively for the future even when current conditions appear comfortable.
Kotak, the founder of Kotak Mahindra Bank, said in a post on X that Alphabet’s scale highlights the gap between the world’s largest technology companies and India’s corporate sector.
“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,” Kotak wrote.
He said the move reflects the importance of continued investment in long-term growth, particularly as global technology companies accelerate spending on artificial intelligence infrastructure and computing capacity.
“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,” Kotak added.
His remarks came after Alphabet announced plans to raise $80 billion through a mix of public offerings and a private placement agreement with Berkshire Hathaway Inc. The company said the proceeds would be used for general corporate purposes, including expanding AI infrastructure and global computing capacity.
The proposed fundraising includes a $40 billion at-the-market stock sale program beginning in the third quarter, along with $30 billion in underwritten offerings of shares and mandatory convertible preferred stock. Alphabet also entered into a separate $10 billion investment agreement with Berkshire Hathaway.
The transactions, if completed, would rank among the largest equity fundraising efforts globally and underscore the scale of capital being deployed by major technology companies as competition in artificial intelligence intensifies. (Source: IANS)
