Airtel Expands its Business, Buys 5.2% Stake in Avaada Energy’s Arm
Bharti Airtel Ltd has acquired 5.2% stake in Avaada MHBuldhana Pvt Ltd., for an amount of Rs 4.55 crore. A subsidiary of Avaada Energy Pvt Ltd., Avaada MHBuldhana Pvt Ltd is a recently established entity, which is focused on producing & transmitting solar energy along with other forms of renewable resources.
On Friday, Bharti Airtel in a trade recording said that the newly established entity will get operational by March next year and thus, there was no income generated as on 31st March, 2020. The acquisition has occurred in all- cash and is expected to complete by March 2021.
Bharti Airtel said that Avaada energy has so far developed a network of 1- gigawatt (GW) solar and wind projects extending over the country. It has also constructed the self-sufficient power maker (IPP) to have crossed the 1 GW installed limit in India.
“With an installed base of 1010 MWp (megawatt peak) and pipeline of 2800 MWp, (Avaada Energy) holds one of the largest renewable energy portfolios in India,” it said.
The acquired entity, Avaada MHBuldhana is currently developing an energy-confining solar power plant in Maharashtra. The telecom-giant’s entry in the solar energy sector can open new investment opportunities and provide more scope for expansion for the segment.