Bharti Airtel Ltd. will acquire 26% stake in AMP Energy Green Three Pvt. According to exchange filings, it is around Rs 38,000 crore. The company signed an agreement to acquire 3.789 billion shares, representing 26% of the special purpose company’s shares.
The Bharti group of companies clarified that the acquisition does not fall within the ambit of a “related party transaction”, while adding that the shares will be acquired at Rs 10 per share for a total consideration of Rs 37.9 billion.
However, the company said that completion of the acquisition is “conditional on AMP Energy Green Three receiving all necessary consents and permits from regulatory authorities regarding open access to self-consumption of electricity.”
AMP Energy Green Three is an SPV created by Amp Energy Green Pvt. For the development, construction, operation and maintenance of a 50MW hybrid wind and solar power plant in a village in Barmer district, Rajasthan.
The telecom giant said the move will help it comply with regulatory requirements for captive power plants under the provisions of the Electricity Act, 2003 and the Indian Electricity Rules, 2005, and procure cost-effective renewable energy.
The application added that the project will be connected to Power Grid’s 220KV grid substation in Fatehgarh and will supply green power to industries across India through the interstate network.
AMP Energy Green Three’s captive solar power plants are expected to be operational only by the second quarter of the 2025-26 financial year and will have no revenue to report, the filing states.
In the second quarter of the current fiscal year, the telco’s consolidated net profit declined by 12% quarter-on-quarter. In the July-September period, the company had posted a profit of Rs 4,153 million compared to Rs 4,159 million in the previous quarter.
Bharti Airtel’s stock closed 0.86 per cent higher at Rs 1,609.75 on the BSE and rose 1.83 per cent on the benchmark Sensex.
