Airtel acquires 9% stake in Avaada Clean

Bharti Airtel has acquired about nine percent stake in renewable energy firm Avaada Clean TN Project for about Rs 7.88 crore in an all-cash deal. Avaada is a subsidiary of Avaada Energy Private Limited, formerly known as Giriraj Renewables Private Limited.

According to the filing, the company has paid Rs 7,88,51,500 in aggregate for the acquisition of aggregate 78,85,150 equity shares of Rs 10 each, accounting for a 9.012 percent stake.

Airtel said that it will act as a special purpose vehicle 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.

Airtel acquired stakes in Avaada Clean to comply with regulatory requirements for captive power plants under the provisions of Electricity Act 2003 and Indian Electricity Rules 2005 and procurement of cost-effective renewable energy.

Avaada primarily engages in the business of development and generation of energy and establishing, commissioning, setting up, operating and maintaining electric power generating stations based on conventional/nonconventional resources and setting up of infrastructure projects on Engineering, Procuring and Constructing (EPC) contract basis.