Bharti Airtel has entered into an agreement to acquire 7.036 per cent stake in Avaada KNShorapur. The deal involves cash considerations of Rs 17.4 million. The acquisition cost in the deal entails an amount of Rs 17.4 million in totality for buying a total of 1,742,650 equity shares of Rs 10 each.
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. The SPV is 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.
Meanwhile, the company specified that the acquisition does not fall within the purview of related party transactions. Also, as per the company, 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.
