In an attempt to diversity businesses, the telecom major Bharti Airtel on Friday said it will acquire 5.2 per cent stake in solar power company Avaada MHBuldhana for Rs 4.55 crore in an all-cash deal.
A good space to explore..
Airtel might have chosen the right sector with the demand for renewable energy expected to remain strong. And they have identified a good firm, in its early stages.
A subsidiary of Avaada Energy Private Limited (AEPL), Avaada MHBuldhana Private Limited is a newly-formed company. It is developing a captive generating solar power plant in Maharashtra expected to function by march 2021. A captive solar power plant refers to a solar power plant that has been implemented by a company for its own consumption.
Interestingly, it is the first independent power producer to cross 1 GW installed capacity milestone in India, according to a regulatory filing by Bharti Airtel.
Bottom line: The company has a portfolio of over 1 gigawatt solar and wind projects across the country and the stake might prove a good for Airtel.