Bharti Airtel (Airtel) on Thursday said it has acquired about nine per cent stake in renewable energy firm Avaada Clean TN Project for about ₹7.88 crore in an all-cash deal.
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 "₹7,88,51,500 in aggregate for the acquisition of aggregate 78,85,150 equity shares of ₹10 each," accounting for a 9.012 per cent stake.
It will act as 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, Airtel added.
Avaada 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.
Shares of Airtel closed at ₹697.55 apiece on the BSE on Wednesday, up 0.88 per cent from the previous close.