Bharti Airtel has entered into an agreement to acquire over 7 per cent stake in Avaada KNShorapur for Rs 1.74 crore as cash consideration, the telecom company said in a regulatory filing on Sunday.
The objects and effects of the acquisition are “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”.
Avaada KNShorapur is a special purpose vehicle formed to own and operate captive power plants, in terms of the regulatory requirement for captive power consumption under electricity laws, it said.
The acquisition does not fall within the purview of ‘related party transactions’.
Giving details of the acquisition cost, the company mentioned that it entails Rs 1,74,26,500 in aggregate for buying a total of 17,42,650 equity shares of Rs 10 each.
“The company has entered into an agreement for the acquisition of 7.036 per cent equity stake in Avaada KNShorapur, 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 filing said.
Avaada KNShorapur is a Special Purpose Vehicle (SPV) under Avaada Indiclean to develop, execute, manage and run up to 10 MW solar power generation plants in Karnataka under the state policy relating to production, supply and distribution of solar energy.
On March 25, Airtel had informed the BSE that Nxtra Data, its subsidiary, has agreed to the acquisition of an 11.3 per cent stake in Avaada KNShorapur, with the deal pegged at about Rs 2.80 crore.
