Bharti Airtel said in a regulatory statement on Sunday that Bharti Airtel has entered into an agreement to acquire over 7 percent stake in Avaada KNShorapur for Rs 1.74 crore as cash consideration. It said Avaada KNShorapur is a special purpose vehicle formed to own and operate captive power plants, in terms of captive power consumption regulatory requirements under electrical laws.
The acquisition does not fall within the purview of "related party transactions".
Giving details of the cost of the acquisition, the company stated that it involved a total of Rs 1,74,26,500 to purchase a total of 17,42,650 shares of share capital at Rs 10 each.
“...The Company has entered into an agreement to acquire 7.036 percent of the shares in Avaada KNShorapur, a special purpose vehicle formed for the purpose of owning and operating a captive power plant, in terms of the regulatory requirements for captive energy consumption under the Electricity Laws.”
The objectives and effects of the acquisition are “to comply the regulatory requirements of captive power plants under the provisions of the Electricity Act 2003 and Electricity Rules of India 2005 and to have cost-effective renewable energy.”
Avaada KNShorapur is a Special Purpose Vehicle (SPV) under Avaada Indiclean to develop, operate, manage and operate solar power plants up to 10MW in Karnataka under the state policy on solar energy production, supply and distribution.
On March 25, Airtel informed BSE that its subsidiary Nxtra Data had agreed to acquire an 11.3 percent stake in Avaada KNShorapur, with the deal pegged at about Rs 2.80 crore.
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