Airtel Forays in to Renewables With 26% Acquisition of AMPSolar SPV

Bharti Airtel has signed a pact with AMPSolar Evolution to acquire a 26 percent stake in the solar energy solutions provider for a total of Rs 8.4 crore.

Marking its debut in the renewables sector, Bharti Airtel has announced that it has signed a pact with AMPSolar Evolution to acquire a 26 percent stake in the solar energy solutions provider for a total of Rs 8.4 crore.

The Sunil Bharti Mittal-led firm has signed an agreement with the renewable energy company to meet the green energy needs and optimise energy costs, as well as to comply with the regulatory requirement around the consumption of electricity.

“…the company has entered into an agreement on October 18, 2019, for the acquisition of equity shares and compulsory convertible debentures (CCDs) in AMPSolar Evolution Private Limited,” the telecom operator revealed in a regulatory filing.

AMPSolar Evolution is a wholly-owned subsidiary of AMPSolar Technology Private Limited and a special purpose vehicle for the purpose of setting up captive solar power projects in Uttar Pradesh.

Airtel will subscribe to 84,000 equity shares of Rs 10 each amounting to Rs 8.4 lakh and 83,160 CCDs of Rs 1,000 each amounting to Rs 8.31 crore — representing total 26 percent stake in the company.

The turnover of the AMPSolar Evolution special purpose vehicle was nil as on March 31, 2019, according to the filing issued by the company.

In May, we had reported that Pharma major Cipla had acquired a 26 percent stake in AMPSolar Power Systems Pvt. Ltd. (AMPSolar), a wholly-owned special purpose vehicle created by AMPSolar Technology Pvt. Ltd. The cost of acquisition is Rs 12.9 crore for the 26 percent stake in the SPV.

The SPV was formed in February 2019 by AMP with the purpose of setting up captive solar power projects in the state of Maharashtra and in the business of generating, producing, accumulating, storing, buying, selling, reselling, transmitting, distributing and supplying electrical power generated using solar energy. The annual turnover of this SPV as on March 31, 2019, was also NIL.