Bharti Airtel has acquired approximately 9 per cent stake in Avaada Clean TN Project for about Rs 78.8 million in an all-cash deal. Avaada Clean TN Project is a renewable energy firm.
The acquisition of the stake in Avaada comes in the backdrop of compliance 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 aforesaid amount is paid against 7,885,150 equity shares of Rs 10 each, accounting for a 9.012 per cent stake. This acquisition 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.
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.