Bharti Airtel, a leading telecommunications company in India, has acquired an additional 5.46% stake in Avaada MHAmravati Private Limited. The telco informed the exchanges about this on March 30, 2023. Nxtra Data Limited, the data center subsidiary of Bharti Airtel, has entered into an agreement that has resulted in the acquisition of an additional 5.464% stake in Avaada.
Avaada MHAmravati is a special purpose vehicle set up for the purpose of owning and operating the Captive Power Plant in terms of the legal requirements for captive power consumption under electricity laws.
On June 6, 2022, Airtel announced that it has entered into an agreement to acquire 51,17,000 (11.696%) shares of Avaada. The cost of this acquisition was Rs 10 for each share, equating to Rs 5,11,70,000. The cost of acquiring an additional 5.464% stake in the company was Rs 2,39,05,000 as Airtel acquired 2,390,500 shares at Rs 10 each.
Airtel’s data center business will require a lot of energy and strength to maintain and expand. Thus, the acquisition of a stake in Avaada is a strategic move by the telco as the entity would assist the company in establishing, commissioning, establishing and operating renewable energy sources. Avaada would look at establishing and operating renewable energy sources such as wind, solar, biomass, hydro, geothermal and more.
In a circular to the stock exchanges, Airtel said: “We would like to inform you that Nxtra Data Limited, a subsidiary of the company, is a
agreement resulting in the acquisition of an additional 5.464% interest in Avaada MHAmravati Private Limited, a special purpose vehicle incorporated for the purpose of owning and operating the Captive Power Plant, in terms of the legal requirement for internal power consumption under electricity laws .