Vodafone Idea to acquire 26% stake in Aditya Birla renewable SPV for captive power
Mumbai: Vodafone Idea shares dipped 1.08% on Tuesday after the company said it would buy a 26% stake in Aditya Birla Renewables SPV 3 to secure renewable energy for its captive power needs, The Financial Express reported.
The telecom major announced it had signed binding Purchase and Power Purchase Agreements (PPAs) on August 12 to acquire the stake in Aditya Birla Renewables SPV 3 Limited (ABRen SPV 3), a special-purpose vehicle formed to own and operate a captive power plant.
ABRen SPV 3, incorporated on November 21, 2024, is a step-down subsidiary of Grasim Industries Limited with an authorised share capital of ₹6.50 crore and a paid-up equity of ₹1 lakh, comprising 10,000 shares of ₹10 each.
The entity has no turnover at present.
Vodafone Idea said the acquisition will cost ₹1.56 crore for 15,60,000 equity shares of ₹10 each, to be invested in one or more tranches over about six months.
The deal has been approved by the company’s Audit Committee and Board, classified as a “Related Party Transaction,” and has obtained all necessary clearances.
The company noted that the acquisition aims to meet regulatory requirements for captive power plants under the Electricity Act, 2003 and the Indian Electricity Rules, 2005, while ensuring cost-effective renewable energy procurement.
Earlier in May, Vodafone Idea reported a consolidated net loss of ₹7,166.1 crore for the March quarter of FY25, compared to ₹7,674.6 crore in the same period last year.
Revenue from operations rose 3.8% year-on-year to ₹11,013.5 crore, while average revenue per user (ARPU) climbed 14.2% to ₹175 from ₹153 a year ago.
The company is scheduled to announce its fiscal first-quarter earnings on August 14.
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