Bharti Airtel to acquire 14.304% stake in Avaada MHAmravati; stock slips ~1%

15 Jun 2022 , 09:16 AM

Bharti Airtel Limited has entered into an agreement for the acquisition of 62,58,000 (14.304%) equity shares in Avaada MHAmravati Private Limited.

The completion of the acquisition is subject to the receipt of all consents, and permissions required to be obtained by Avaada MHAmravati from the regulatory authority for open access for captive consumption of electricity.

The acquisition is for a consideration of Rs6.26 crore. The company shall acquire 62,58,000 equity shares of Rs10 each.

Avaada MHAmravti is a company engaged in the business of establishing, setting up, commissioning, operating, and generating electricity/power supply by using renewable energy sources such as wind, solar, hydro, bio-mass, geothermal, co-generation, and/or any other means including transmission, distribution, supply and sale of such power either directly or through transmission lines and facilities of Central/State Governments or Private companies, etc.

The company is a subsidiary of Avaada Energy Private Limited and is an SPV formed for owning and operating the Captive Power Plant.

Bharti Airtel is currently trading at Rs678.50 down by Rs3.65 or 0.54% from its previous closing of Rs682.15 on the BSE. The scrip opened at Rs682.95 and has touched intraday high and low of Rs682.95 and Rs676.20 respectively.