Google's $80 billion move is a ‘wake-up call’ for Indian Inc, says Uday Kotak on X
Uday Kotak, in a post on X, pointed to a recent announcement by Google, which despite being cash surplus, unveiled an additional capital raise of $80 billion.
As Indian businesses celebrate another successful season of the Indian Premier League (IPL), veteran banker Uday Kotak believes it is time to shift the spotlight back to what truly drives long-term economic growth — investment in the future.
In a post on social media platform X, Uday Kotak, founder and non-executive director of Kotak Mahindra Bank, pointed to a recent announcement by Google, which despite being cash surplus, unveiled an additional capital raise of $80 billion. For Kotak, the move highlights how the world's leading companies continue to invest aggressively even when they are already generating enormous profits and sitting on strong balance sheets.
The scale of Google's financial strength, he noted, is staggering.
"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 said in his post.
What makes those figures particularly striking is their comparison with India Inc. Kotak observed that Google's profits and market value are close to the combined profits and market capitalisation of all listed companies in India.
"It’s a wake up call to all companies to invest into the future, whatever the present maybe," Kotak said.
Kotak ended his message with a light-hearted but pointed observation. With the IPL season now over, he said, attention should return to the fundamentals of economic progress.
"Now that IPL is done and dusted, time for India to focus on business of business," he said.
Alphabet Deal
Kotak's remarks followed Alphabet's announcement of a massive capital mobilisation exercise aimed at strengthening its artificial intelligence capabilities and meeting the rapidly growing demand for computing infrastructure.
The Google parent unveiled a funding plan worth up to $80 billion, comprising multiple capital-raising initiatives. As part of the plan, Alphabet intends to raise $30 billion through concurrent public offerings, including $15 billion in depositary shares linked to mandatory convertible preferred stock and another $15 billion through the issuance of Class A and Class C shares.
In addition, the company plans to launch an at-the-market share sale programme of up to $40 billion involving Class A and Class C stock, with the programme expected to commence in the third quarter of 2026.
Alphabet has also secured a private placement deal with Berkshire Hathaway, under which it will sell $10 billion worth of shares. The company said the capital raised would be directed toward expanding its AI computing infrastructure as demand for generative AI applications and cloud services continues to surge.
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