As Airtel’s data center business grows and expands, it will require a significant amount of energy and power to sustain. Therefore, the telecom company’s decision to acquire a stake in Avaada is a strategic one, as it will assist in establishing, commissioning, setting up, and operating renewable energy sources.
Airtel, one of India’s leading telecom companies, has announced the acquisition of an additional 5.46% stake in Avaada, a leading renewable energy company in the country. This move comes as part of Airtel’s strategy to increase its presence in the green energy sector and reduce its carbon footprint.
Avaada, which was founded in 2017 by Vineet Mittal, has rapidly emerged as a leading player in India’s renewable energy sector. The company currently has a portfolio of over 2 GW of renewable energy projects, with a focus on solar and wind energy. Avaada has also been a key contributor to India’s ambitious target of generating 175 GW of renewable energy by 2022.
Airtel’s acquisition of an additional stake in Avaada will help the telecom giant to leverage the renewable energy expertise of the company to power its vast network of cell towers and data centers across the country. With this investment, Airtel’s total stake in Avaada now stands at 11.46%.
On June 6, 2022, Airtel made an announcement regarding its acquisition of 11.696% equity shares in Avaada, amounting to 51,17,000 shares, at a cost of Rs 10 per share, totaling to Rs 5,11,70,000. In order to acquire an additional 5.464% stake in Avaada, Airtel purchased 2,390,500 shares of Rs 10 each, which cost the company Rs 2,39,05,000.
In a circular to the stock exchanges, Airtel said, “we wish to inform you that Nxtra Data Limited, a subsidiary of the Company has entered into an agreement resulting in acquisition of 5.464% additional stake in Avaada MHAmravati Private Limited, 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.”
The acquisition of an additional stake in Avaada is in line with Airtel’s commitment to reducing its carbon footprint and increasing its use of renewable energy. The company has already set a target of using 50% renewable energy to power its operations by 2025 and is taking several initiatives to achieve this goal.
With this acquisition, Airtel has taken a significant step towards achieving its sustainability goals and promoting renewable energy in India.