Bharti Airtel acquires ~11.70% stake in Avaada; stock slips ~1%

7 Jun 2022 , 09:57 AM

Bharti Airtel Limited informed the investors and exchanges that Nxtra Data Limited, a subsidiary of the Company has entered into an Agreement for the acquisition of 51,17,000 (11.696%) equity shares in Avaada MHAmravati Private Limited.

Avaada is 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 acquisition is to comply with the regulatory requirements for captive power plants under the provisions of the Electricity Act 2003 and Indian Electricity Rules 2005 and the procurement of cost-effective renewable energy.

Consideration to be paid for such acquisition is Rs5.12 crore for the acquisition of aggregate 51, 17,000 equity shares of Rs10 each.

Avaada MHAmravti is a company engaged in business to carry on in India or elsewhere the business of commissioning, operating, , establishing, setting up, and generating electricity/ power supply through renewable energy sources such as wind, solar, biomass, hydro, geothermal, co-generation, and/ or any other means.

Bharti Airtel is currently trading at Rs676.50 down by Rs6.85 or 1% from its previous closing of Rs683.35 on the BSE. The scrip opened at Rs678 and has touched a high and low of Rs681.40 and Rs675 respectively.