H.G. Infra Expands into Battery Energy Storage with New SPV

H.G. Infra Engineering Limited (HGIEL), a leading infrastructure development company, has announced the incorporation of a wholly owned subsidiary named H.G. Choraniya Bess Private Limited on June 25, 2025.

The company stated that the new entity will act as a Special Purpose Vehicle (SPV) for setting up Standalone Battery Energy Storage Systems (BESS) in Gujarat under Tariff-Based Competitive Bidding (TBCB) Phase-VI.

Incorporation Details

H.G. Choraniya Bess Private Limited has been incorporated with an authorised capital of ₹15,00,000, divided into 1,50,000 equity shares of ₹10 each. The subscribed capital also stands at ₹15,00,000. As a newly incorporated entity, it is yet to commence business operations, and therefore, no turnover data is currently available.

As a wholly owned subsidiary of H.G. Infra Engineering Ltd., H.G. Choraniya Bess Private Limited qualifies as a related party under SEBI regulations. The formation of the subsidiary falls within the ambit of related party transactions. However, apart from the shareholding held by HGIEL, no other promoter, group company, or promoter group has any interest in the new entity. The transaction has been carried out on an arm’s length basis.

Industry and Business Objectives

The newly formed SPV will operate in the Battery Energy Storage System (BESS) segment, a rapidly growing industry crucial to supporting India's renewable energy transition. The objective behind this incorporation is to undertake energy storage projects in alignment with government initiatives and competitive bidding models. Although this line of business extends beyond HGIEL’s traditional infrastructure domain, it complements the company’s broader strategy of diversification and sustainable growth.

Financial Considerations and Shareholding

The acquisition has been made through cash consideration, involving an initial subscription of ₹15 lakh in equity share capital. HGIEL holds 100% of the shareholding, ensuring full ownership and control over the new subsidiary.

H.G. Infra Engineering Share Price Performance

On June 26, 2025, H.G. Infra Engineering share price opened at ₹1,049.50, up from its previous close of ₹1,040.10. At 9:39 AM, the share price of H.G. Infra Engineering was trading at ₹1,052.40, up by 1.18% on the NSE.

Also Read: H.G. Infra Engineering Emerges as Lowest Bidder for Naval Dockyard Project!

Conclusion

With the formation of H.G. Choraniya Bess Private Limited, H.G. Infra Engineering Ltd has made a strategic move into the battery energy storage sector. Although the newly incorporated company has yet to begin operations, this initiative marks HGIEL’s commitment to embracing sustainable and future-oriented technologies. The SPV is expected to play a key role in strengthening the company’s presence in the clean energy infrastructure segment in the coming years.

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