Bharti Airtel trades 1% higher post acquisition announcements

28 Mar 2022 , 09:52 AM

Bharti Airtel Limited will acquire around 4.7% stake in Indus Towers from Euro Pacific Securities, an affiliate of Vodafone Group Plc, at a price of Rs187.88 per share. The total transaction cost stands at Rs2,388.06 crore.

At around 9.55 am, Bharti Airtel Ltd. was trading at Rs716 apiece up by Rs6.75 or 0.95% from its previous closing of Rs709.25 apiece on the BSE.

The telecom operator has entered into an Agreement for acquisition of 7.036% equity stake in Avaada KNShorapur 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 cost of the acquisition is Rs1,74,26,500 in aggregate for acquisition of aggregate 17,42,650 equity shares of Rs10/- each.

Meanwhile, Nxtra Data Limited, a subsidiary of the Company has entered into an Agreement for acquisition of 11.334% equity stake in Avaada KNShorapur. The cost of the acquisition is Rs2,80,73,500/- in aggregate for acquisition of aggregate 28,07,350 equity shares of Rs10/- each.

“To comply with the regulatory requirement for captive power plants under the provisions of Electricity Act’ 2003 and Indian Electricity Rules’ 2005 and procurement of cost-effective renewable energy,” company explained the rationale behind the acquisitions.

The approvals required are Grid Connectivity Approval and Open Access Approval cum WBA.

Avaada KNShorapur is engaged in business to act as a Special Purpose Vehicle (SPV) under Avaada Indiclean Private Limited to develop, execute, manage and run upto 10 MW Solar Power Generation Plant(s) in the State of Karnataka in accordance with the policy of the Government of Karnataka relating to production, supply and distribution of solar energy.

It is a Subsidiary of Avaada Indiclean Private Limited which is primarily engaged in the business to act as a SPV created by Avaada Energy Private Limited to develop, execute, manage and run upto 50 MW Solar Power Generation Plant(s) in the State of Karnataka in accordance with the policy of the Government of Karnataka relating to production, supply and distribution of solar energy.