India's Bharti Space to invest an additional €120 million in French satellite operator Eutelsat

Bharti Space Ltd., the space and satellite arm of Bharti Enterprises, is set to invest an additional €120 million (approximately Rs 1,204 crore) in French satellite group Eutelsat, deepening its financial support even as its stake in the company is poised to shrink.

The latest commitment follows Bharti Space's earlier investment of €30 million in June through a reserved capital increase, bringing its total investment in the ongoing fundraising to €150 million. The capital infusion forms part of Eutelsat’s expanded €1.5 billion (over Rs 15,000 crore) capital raise, an increase from the previously announced €1.35 billion, aimed at fortifying its global position in satellite communications.

Following the fresh investment, Bharti Space’s stake in Eutelsat will decline to 17.88% from the current 24.09%. The French government, which is injecting €750 million into the round, €550.7 million via preferential allotment and €199.3 million through the rights issue, will emerge as the company’s largest shareholder, holding 29.65%.

The UK government is also joining the capital raise, committing €163 million, split between €90.1 million via the reserved issue and €73.2 million through the rights offering, securing a 10.89% stake. Other key investors include French shipping conglomerate CMA CGM, which will hold 7.46%, and sovereign investor FSP, which will own 4.99% following its investment.

The fundraise is expected to close by the end of 2025.

Bharti Enterprises became Eutelsat’s largest shareholder in 2023 following the merger of Eutelsat with OneWeb, the UK government-backed satellite startup that Bharti helped rescue from bankruptcy in 2020. The merged entity, now known as Eutelsat OneWeb, combines OneWeb’s constellation of over 600 low Earth orbit (LEO) satellites with Eutelsat’s legacy of geostationary operations.

For Bharti, the stake in Eutelsat represents a critical pillar in its bid to bring satellite-based broadband services to India. Eutelsat OneWeb is one of only three firms to have received India’s Global Mobile Personal Communication by Satellite (GMPCS) licence, alongside Jio Platforms-backed SES and Elon Musk’s Starlink.

The company has received all necessary clearances except spectrum, and commercial rollout in India is expected once the government finalizes spectrum allocation norms.

Satcom race intensifies in India

India’s satellite communications market is heating up rapidly. Starlink, which now operates more than 6,000 satellites, nearly ten times that of Eutelsat OneWeb, recently secured its final regulatory clearance from IN-SPACe and received a key licence from the Department of Telecommunications (DoT) to operate in the country.

Jio Platforms has partnered with Luxembourg-based SES to offer satellite broadband, and Vodafone Idea is exploring direct-to-device satellite services through a tie-up with U.S.-based AST SpaceMobile. Global players like Amazon Kuiper and Globalstar have also filed for licences to enter the Indian market.