Bharti Airtel To Acquire 26% Stake In AMP Energy Green's SPV For Rs 38 Crore

Bharti Airtel Ltd. will acquire a 26% stake in AMP Energy Green Three Pvt. for nearly Rs 38 crore, according to an exchange filing. It has entered into an agreement for acquisition of 3,78,90,005 equity shares, or a 26% stake, in the special purpose vehicle.

The Bharti group company, while clarifying that the acquisition doesn't fall within the purview of "related-party transactions", added that it will acquire the equity shares of Rs 10 apiece, for an aggregate of Rs 37.9 crore.

However, the company said that the completion of acquisition "is subject to the receipt of all consents, permissions required to be obtained by AMP Energy Green Three from regulatory authority for open access for captive consumption of electricity".

AMP Energy Green Three is an SPV created by Amp Energy Green Pvt. for developing, constructing, operating and maintaining a 50-MW hybrid wind-solar power plant in a village in Rajasthan's Barmer district.

According to the telecom giant, the move will enable it 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 filing added that the project will be connected to Power Grid Corp.'s 220-KV grid substation at Fatehgarh and supply green power to industries across India through interstate network.

AMP Energy Green Three's captive solar power plants will become operational only by the second quarter of FY 2025-26, it doesn't have any revenue to report, the filing said.

For the second quarter of the current financial year, the telco's consolidated net profit had fallen 12% sequentially. It had reported a profit of Rs 4,153 crore during the July–September period as compared to Rs 4,159 crore in the previous quarter.

Shares of Bharti Airtel Ltd. closed 0.86% higher at Rs 1,609.75 apiece on the BSE, compared to a 1.83% advance in the benchmark Sensex.