Bharti Airtel to Buy Additional Stake in Avaada’s SPV

With an aim to reduce its carbon footprints, telecom giant Bharti Airtel has extended its previous partnership with Avaada Energy and agreed to acquire an additional 3.33 per cent stake in the latter’s special purpose vehicle (SPV), Avaada MHBuldhana.

March 24, 2021. By Manu Tayal

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With an aim to reduce its carbon footprints, telecom giant Bharti Airtel has extended its previous partnership with Avaada Energy and agreed to acquire an additional 3.33 per cent stake in the latter’s special purpose vehicle (SPV), Avaada MHBuldhana.

As per the extended deal, the telecom major planned to buy additional 2,914,100 equity shares i.e. approx. 3.33 per cent at the rate of Rs 10 per equity share in Avaada MHBuldhana Pvt Ltd, 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.

However, the transaction is expected to be closed by April 30, 2021.

In November last year, the company had acquired 5.2 per cent stake in Avaada’s SPV for about Rs 45.5 crore, and the transaction is likely to be completed by March 31, 2021. 

Through this deal with Avaada, the Sunil Bharti Mittal-led firm is planning to source 21.32 MW (DC) of Solar Power under the group captive arrangement and thereby.

Commenting on the stake sale, Vineet Mittal, Chairman of Avaada Group, said that, “Avaada continues to contribute to India’s green energy revolution led by Hon’ble PM Shri Narendra Modi. It is good to see that leading corporates are switching from fossil fuel-based energy to clean energy solutions; we are working with some of the leading MNCs who have committed to switching to 100% renewables.”

Avaada Energy is among the leading Indian Independent Power Producers, developing projects across various states like Rajasthan, Haryana, Maharashtra, Uttar Pradesh, and Bihar. The company has been targeting an operational capacity of over 5 GW by 2021 end. These days sourcing renewable energy under Group captive arrangement is one of the preferred options for corporations desiring to reduce their CO2 emissions significantly and bring down electricity procurement cost.

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