Vodafone Idea to Acquire 26% Stake in Aditya Birla Renewables SPV 3 for Renewable Energy

Vodafone Idea Limited has signed a Power Purchase Agreement and a Share Purchase Agreement on 12 August 2025 to acquire at least 26% of the paid-up equity in Aditya Birla Renewables SPV 3 Limited (ABRen SPV 3), a special purpose vehicle set up for a captive power plant. Incorporated on 21 November 2024, ABRen SPV 3 has an authorised share capital of ₹6.5 crore and a paid-up capital of ₹1 lakh.

Acquisition Structure and Related Party Nature 

The ₹1.56 crore deal involves subscribing to 15,60,000 equity shares of ₹10 each, to be executed in one or more tranches over approximately 6 months. The transaction is classified as a related party deal, with approvals from the Audit Committee and Board already in place. ABRen SPV 3 is a step-down subsidiary of Grasim Industries Limited, promoter of Vodafone Idea, and the acquisition will be carried out at arm’s length. The entity currently has no turnover recorded to date.

Strategic Rationale and Industry Positioning 

This acquisition will help Vodafone Idea comply with regulatory requirements for captive power plants under the Electricity Act, 2003 and the Indian Electricity Rules, 2005, while enabling cost-effective renewable energy procurement. ABRen SPV 3 is currently developing a captive solar power plant in Maharashtra and focuses on generating and supplying power through solar and wind energy. No governmental approvals are required for the deal, which will be entirely cash-funded.

Vodafone Idea Q1FY26 Earnings Results 

Vodafone Idea posted a ₹7,295 crore net loss for the June quarter, slightly lower than last year’s ₹7,312 crore. Revenue grew 13.7% to ₹10,410 crore, with ARPU up 23.4% to ₹128 after tariff hikes. Gross debt totalled ₹1,990.8 billion, including ₹1,166.0 billion in spectrum dues, ₹672.7 billion in AGR liabilities, and ₹152.0 billion in borrowings. EBITDA margin fell to 41.6% from 45.6% last quarter.

Also Read: Indian Telcos Oppose DoT Plan for Direct Spectrum Allocation!

Vodafone Idea Share Price Performance 

As of August 13, 2025, at 9:23 AM, Vodafone Idea share price is trading at ₹6.49 per share, reflecting a gain of 0.31%. Over the past month, the stock has declined by 15.82%.

Conclusion

Vodafone Idea’s stake purchase in ABRen SPV 3 strengthens its renewable energy portfolio while meeting statutory captive power plant norms. The move reflects a dual focus on sustainability and long-term cost efficiency, even as the company navigates significant debt obligations.

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