Shares of Vodafone Idea were down 1.08 per cent today after the telecom major announced that it has entered into binding Purchase and Power Purchase Agreements (PPAs) on August 12, to acquire a 26 per cent equity stake in Aditya Birla Renewables SPV 3 Limited (ABRen SPV 3), a renewable energy special-purpose vehicle (SPV) formed for the purpose of owning and operating the Captive Power Plant.
Incorporated on November 21, 2024, ABRen SPV 3 is a step-down subsidiary of Grasim Industries Limited, and holds an authorised share capital of Rs 6.50 crore, alongside a paid-up equity of Rs 1 lakh spread across 10,000 shares of Rs 10 each. Currently, the entity has no turnover.
Acquisition details
In a regulatory filing, Vodafone said that the cost of acquisition of stake is poised to be Rs 1.56 crore which will be invested in one or more tranches over a period of approximately six months.
Cost of Acquisition shall be Rs. 1,56,00,000/- for acquisition of 15,60,000 equity shares of Rs. 10/- each. The acquisition shall be in one or more tranches.
Vodafone Idea’s Audit Committee and Board have approved the acquisition, categorising it as a “Related Party Transaction” and securing all required clearances.
Objective of acquisition
Vodafone said that the key objective of the acquisition is to comply with regulatory requirements for captive power plants under the provisions of Electricity Act, 2003 and Indian Electricity Rules, 2005 and procurement of cost-effective renewable energy.
Q4FY25 performance
Earlier in May, Vodafone Idea (Vi) had released its results for the fourth quarter of FY25 with consolidated net loss at Rs 7,166.1 crore. This was slightly better than Rs 7,674.6 crore reported in the same quarter last year. Revenue from operations grew 3.8 per cent YoY to Rs 11,013.5 crore in Q4FY25, offering a modest boost.
The average revenue per user (ARPU) rose to Rs 175 in the March quarter, up from Rs 153 a year ago, marking a 14.2 per cent YoY growth.
The telecom major will announce its fiscal first quarter earnings on August 14.