Bharti Airtel has acquired around a 9 per cent stake in renewable energy firm Avaada Clean TN Project for about Rs 7.88 crore in an all-cash deal, according to a regulatory filing.
“In terms of Regulation 30 of the SEBI Listing Regulations, we wish to inform you that the Company has entered into an Agreement resulting into the acquisition of aggregate 9.012 per cent equity stake in Avaada CleanTN Project Private Limited, a special purpose vehicle formed for the purpose of owning and operating the Captive Power Plant, in terms of the regulatory requirement for captive power consumption under electricity laws,” the company said in a stock exchange filing.
Bharti Airtel acquired a stake in Avaada to comply with regulatory requirements for captive power plants under the provisions of Electricity Act 2003 and Indian Electricity Rules 2005 and procurement of cost-effective renewable energy, the company said in a regulatory filing.
According to the filing, the company has paid ” Rs 78,851,500 in aggregate for the acquisition of which the shares are acquired aggregate 7,885,150 equity shares of Rs10/- each ” for a 9.012 per cent stake.
Avaada is engaged in the business, in India or acquired in terms of products/line of elsewhere, of establishing, commissioning, setting business acquired, date of up, operating and generating of electricity/ power incorporation, history of last 3 years supply through renewable energy sources such as turnover, country in which the wind, solar, biomass, hydro, geothermal, co acquired entity has presence and any generation and/ or any other means including other significant information (in brief) transmission, distribution, supply and sale of such power either directly or through transmission lines and facilities of Central / State Governments or Private companies or Electricity Boards to industries and to Central/State Government and other consumers of electricity including captive consumption for any industrial projects promoted by this company or promoter companies and generally to develop, generate, accumulate power at any other place or places and to transmit, distribute, sell and supply such power.
It is a Subsidiary of Avaada Energy Private Limited (Formerly known as Giriraj Renewables Private Limited) which is primarily engaged in the business of development and generation of Energy and establishing, commissioning, setting up, operating and maintaining electric power generating stations based on conventional/nonconventional resources and setting up of infrastructure projects on Engineering, Procuring and Constructing (EPC) contract basis.
In the month of February Bharti Airtel (“Airtel”) had announced the commissioning of a new 21 MW solar power plant in District Bhuldana, Maharashtra as part of the company’s commitment to progressively reduce its carbon footprint and contribute to the global efforts to curb the effects of climate change.