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Bharti Airtel to acquire 7% stake in Avaada KNShorapur

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Capital Market
Last Updated : Mar 28 2022 | 12:31 PM IST

The telecom major has entered into an agreement to acquire 7.036% stake in Avaada KNShorapur for Rs 1.74 crore as cash consideration.

Avaada KNShorapur acts as a Special Purpose Vehicle (SPV) under Avaada Indiclean to develop, execute, manage and run upto 10 MW Solar Power Generation Plant(s) in Karnataka.

The objects and effects of the acquisition are "To comply with 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."

The acquisition does not fall within the purview of 'related party transactions'

Separately, Bharti Airtel's data centre subsidiary, Nxtra Data, has acquired an 11.33% equity stake in Avaada KNShorapur, an SPV 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.

Nxtra Data has acquired the stake for a cash consideration of Rs 2.80 crore "for acquisition of aggregate 28,07,350 equity shares of Rs 10 each," Airtel said in a regulatory filing on Friday.

The acquisition has been made "to comply with 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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Bharti Airtel is a global communications solutions provider with over 480 million customers in 16 countries across South Asia and Africa. The company reported a 2.8% decline in consolidated net profit to Rs 830 crore in Q3 FY22 over Q3 FY21. Total revenues stood at Rs 29,867 crore during the quarter, up 12.6% YoY.

Shares of Bharti Airtel rose 0.42% to Rs 709.25 on Friday.

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First Published: Mar 28 2022 | 8:59 AM IST

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