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Airtel to acquire 7% stake in Avaada KNShorapur
March 28, 2022
Bharti Airtel has gone into an agreement to acquire 7% stake in Avaada KNShorapur for ₹1.74 crore as cash consideration, the telecom organization said in a regulatory filing on Sunday.
Avaada KNShorapur is a unique reason vehicle formed to own and work captive power plants, in terms of regulatory requirement for captive power consumption under electricity laws, it said.
The securing doesn’t fall inside the domain of ‘related party transactions.
Giving details of the securing cost, the organization referenced that it involves ₹1,74,26,500 in total for purchasing an aggregate of 17,42,650 equity shares of ₹10 each.
“The organization has gone into an agreement for the acquisition of 7.036 percent equity stake in Avaada KNShorapur, a special purpose vehicle shaped to claim and work the captive power plant, concerning the administrative prerequisite for captive power utilization under electricity laws regulations,” the filing said.
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”.
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