India's Telecom Giant Makes Bold Move into Energy Sector with 26 per cent Stake Acquisition!

Strategic move into the energy sector to fulfill captive power needs and promote sustainable growth.

In a move to comply with regulatory requirements under the Electricity Act, 2003, Bharti Airtel has acquired 26 per cent equity in AMP Energy Green Three Private Limited. This acquisition aligns with the company's strategy to invest in renewable energy, particularly through a captive power plant designed to meet energy needs while also supporting India's green energy goals. AMP Energy Green Three is a special purpose vehicle (SPV) established for owning and operating a 50 MW hybrid wind-solar power plant in Rajasthan.

Regulatory Approval and Acquisition Details

The acquisition is part of Bharti Airtel’s broader initiative to secure a stable, cost-effective energy supply for its operations. The deal involves an aggregate investment of Rs 37.89 crore for acquiring 3,78,90,005 equity shares in AMP Energy Green Three. The transaction is expected to be completed after receiving necessary regulatory approvals, including grid connectivity and open access approval from relevant authorities.

Business Impact and Industry Relevance

The acquisition directly supports Bharti Airtel's energy consumption needs in compliance with electricity laws. As part of the power sector, AMP Energy Green Three's renewable energy project will be crucial for the company's green power procurement. The 50 MW hybrid plant will provide green energy to industries through interstate power transmission networks, contributing to India's sustainability and energy diversification efforts.

Future of the Captive Power Project

AMP Energy Green Three is expected to commence operations by Q2 FY 2025-26. The plant's construction, which includes wind and solar energy integration, will help meet Bharti Airtel's increasing power requirements. The company's investment in renewable energy projects is also in line with its long-term goals of operational sustainability and reducing carbon footprints.

Leadership Transition and Organizational Strategy

Bharti Airtel also announced leadership changes as part of its succession planning. Gopal Vittal, the current CEO, will transition into the role of Vice-Chairman & Managing Director in 2025, while Shashwat Sharma has been appointed as the CEO-designate. This strategic leadership shift aims to ensure continued growth and operational efficiency in the coming years.

Stock Performance Update

As of 11:20 AM on Friday, Bharti Airtel's stock is trading at Rs 1,04.10, marking a slight decline of 0.34 per cent. Over the past year, the stock has seen impressive growth, providing a return of 55.01 per cent to its investors. The company's current market capitalization stands at Rs 9,59,775 crore, reflecting its strong position in the market.

In conclusion, Bharti Airtel’s acquisition in AMP Energy Green Three is a step toward achieving its green energy goals and securing future energy needs, while maintaining a strong commitment to sustainability and operational efficiency.

Disclaimer: The article is for informational purposes only and not investment advice.