H.G. Infra Engineering Limited announced the acquisition of additional equity shares in its wholly owned subsidiary, H.G. Banaskantha Bess Private Limited, through a Rights Issue. The total investment made by the Company amounts to Rs. 48,52,00,000/-. This strategic move is designed to facilitate the expansion of the business into the Battery energy storage system sector. The acquisition was completed on March 23, 2026.
Strategic Investment in Subsidiary for Business Expansion
H.G. Infra Engineering Limited has finalized a significant transaction to increase its stake in its wholly owned subsidiary, H.G. Banaskantha Bess Private Limited. The acquisition was executed through the subscription of shares via a Rights Issue, demonstrating the parent company’s commitment to expanding its operational footprint.
Transaction Details
The key highlights of the investment completed on March 23, 2026, are as follows:
- Subsidiary Name: H.G. Banaskantha Bess Private Limited (Incorporated December 03, 2024).
- Total Investment Amount: Rs. 48,52,00,000/- in Cash Consideration.
- Shares Acquired: 6,40,200 Equity Shares, acquired at an issue price of Rs. 758/- per share (face value of Rs. 10/-).
- Turnover Status: The subsidiary reported Nil Turnover as on March 31, 2025.
Business Rationale and Industry Focus
The primary rationale for the acquisition is the expansion of the Company’s business. The subsidiary, H.G. Banaskantha Bess Private Limited, is focused on the Battery energy storage system industry. Although the subsidiary is a related party, the transaction was conducted through an arm’s length mechanism, ensuring appropriate corporate governance standards were met.
Corporate Governance Note
The Company confirms that this transaction falls within the purview of related party transactions due to the wholly owned subsidiary status. The parent company, H.G. Infra Engineering Limited, is the sole interested party in this share acquisition, as the promoters or promoter groups hold no separate interest outside of the Company’s holding.
Source: BSE
