H.G. Infra Engineering Expands into Solar Sector with New Subsidiary Acquisition

On June 13, 2024, H.G. Solar Projects Private Limited, a wholly-owned subsidiary of H.G. Infra Engineering Limited, established a wholly-owned subsidiary called H.G. Sanchore Solar Project Private Limited.

The target entity is H.G. Sanchore Solar Project Private Limited. As the company has not yet commenced business operations, its turnover is unavailable.

The acquisition might be considered a related party transaction since it involves investment in a step-down subsidiary that is a 100% subsidiary of H.G. Solar Projects Private Limited, a wholly-owned subsidiary of H.G. Infra Engineering Limited. Ms. Poonam Singh Choudhary and Mr. Navneet Choudhary, directors of H.G. Sanchore Solar Project Private Limited, are part of the promoter group of H.G. Infra Engineering Limited. The shares have been subscribed at par and on an arm’s length basis.

Objective Of Acquisition

The acquired entity, H.G. Sanchore Solar Project Private Limited, operates in the solar power industry. The purpose of the acquisition is for H.G. Sanchore Solar Project Private Limited to conduct business in the solar power sector. Since this is a newly incorporated company, H.G. Infra Engineering Limited has no immediate impact.

Details Of Acquisition

The acquisition involves cash consideration. The initial investment is ₹1,00,000, which consists of subscribing to 10,000 equity shares at ₹10 each. H.G. Solar Projects Private Limited, a wholly-owned subsidiary of H.G. Infra Engineering Limited, has acquired 100% of the shareholding.

About H.G. Infra Engineering Limited

H.G. Infra Engineering Limited is a prominent road and highway company, boasting over 15 years of successful project execution. HGIEL offers engineering, procurement, and construction (EPC) services on a fixed-sum turnkey basis and handles civil construction and related infrastructure projects within the road construction industry. The company operates in Rajasthan, Uttar Pradesh, Haryana, Uttarakhand, Maharashtra, and Arunachal Pradesh. It has developed a robust business model centred on full integration, a large fleet of in-house equipment, and a skilled workforce.

On June 13, 2024, the share price of H.G. Infra Engineering Limited opened at ₹1,776.00, touching the day’s high at ₹1,781.20, as of 02:47 PM on the NSE.

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