Bharti Airtel picks 14.30% stake in SPV Avaada MHAmravati 

Bharti Airtel has entered into an agreement with special purpose vehicle Avaada MHAmravati Pvt Ltd for acquisition of 14.30 per cent equity shares. The company will pick up 62,58,000 equity shares at the rate of Rs 10 each, amounting to Rs 6,25,80,000. 

The acquisition will be complete once the necessary approvals are in, including consents and permissions required to be obtained by Avaada MHAmravati from regulatory authority for open access for captive consumption of electricity. 

The company picked the stake to procure cost-effective renewable energy, and to comply with the regulatory requirements for captive power plants under the provisions of Electricity Act' 2003 and Indian Electricity Rules' 2005.

Incorporated on December 2, 2019, Avaada MHAmravti is a SPV, engaged to carry on the business of establishing, commissioning, setting up, operating and generating of electricity/power supply through renewable energy sources such as wind, solar, bio-mass, hydro, geo-thermal, co-generation and/or any other means including transmission, distribution, supply and sale of such power.

Avaada MHAmravti is a subsidiary of Avaada Energy Private Limited, primarily engaged in the business of development and generation of energy and establishing, commissioning, setting up, operating and maintaining electric power generating stations. 

Earlier this month, Nxtra Data, a subsidiary of Bharti Airtel had entered into an agreement to buy 5.1 million equity shares in  Avaada MHAmravti, amounting to 11.69 per cent stake. The transaction was carried out at Rs 10 per equity share, taking the total investment to Rs 5.12 crore.

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