Telecom giant, Bharti Airtel to acquire a 7.036% stake in the Avaada KNShorapura special purpose vehicle formed for the purpose of owning and operating the Captive Power Plant. Both the companies signed an agreement on Sunday.
The cost of the acquisition will be for consideration of Rs1,74,26,500. Airtel will acquire 17,42,650 equity shares having a face value of ₹10 each.
Avaada KNShorapur incorporated in October last year, is engaged in business to act as an SPV under Avaada Indiclean Private Limited to develop, execute, manage and run up to 10 MW Solar Power Generation Plant(s) in the State of Karnataka in accordance with the policy of the Government of Karnataka relating to production, supply, and distribution of solar energy.
In its regulatory filing, Bharti Airtel stated that the completion of the acquisition is subject to the receipt of all consents, permissions required to be obtained by Avaada KNShorapur from the regulatory authority for open access for captive consumption of electricity.
Last week, on March 25, Airtel announced that subsidiary Nxtra Data entered into an Agreement for the acquisition of an 11.334% equity stake in Avaada KNShorapu. Nxtra Data will acquire 28,07,350 equity shares of Avaada having a face value of ₹10 each.
On Friday, Airtel shares finished at ₹709.25 apiece up by 0.4% on BSE. The shares have touched an intraday high and low of ₹714.40 apiece and ₹705.80 apiece.