H.G. Infra Engineering Limited Expands into Solar Power with a New Subsidiary

On July 04, 2024, H.G. Infra Engineering Limited announced that its subsidiary H.G. Solar Projects Private Limited, has established a new wholly-owned subsidiary, H.G. Dudu Solar Project Private Limited.

This acquisition is considered a related party transaction since it involves a step-down subsidiary, with H.G. Dudu Solar Project Private Limited being a 100% subsidiary of H.G. Solar Projects Private Limited, which is wholly owned by H.G. Infra Engineering Limited.

The promoter group has no additional interest in H.G. Dudu Solar Project Private Limited beyond this. The shares have been subscribed to at par and arm’s length. As H.G. Dudu Solar Project Private Limited is a newly incorporated company, H.G. Infra Engineering Limited has no immediate impact.

Acquisition Details

Consideration: Consideration for the acquisition is cash.

Cost of Acquisition: The acquisition cost is not applicable as it is a step-down subsidiary.

Stake Acquired: H.G. Solar Projects Private Limited has initially subscribed to the share capital of ₹1,00,000, divided into 10,000 equity shares of ₹10 each.

Percentage of Shareholding: The investment amounts to 100% shareholding by H.G. Solar Projects Private Limited.

About H.G. Dudu Solar Project Private Limited

H.G. Dudu Solar Project Private Limited was incorporated on July 4, 2024 under the Companies Act, 2013. It is based in Rajasthan, India, and its primary business focuses on solar power. The company has not yet commenced business operations and has no turnover to report.

About H.G. Infra Engineering Limited

H.G. Infra Engineering Limited (HGIEL) is an Indian company specialising in road infrastructure. It provides Engineering, Procurement, and Construction (EPC) services and maintains roads, bridges, flyovers, and other infrastructure projects. The company primarily engages in road construction through its EPC business, with a selective focus on Hybrid Annuity Model (HAM) projects. HGIEL is also pre-qualified to bid independently for large EPC and HAM projects.

On July 5, 2024, the share price of H.G. Infra Engineering Limited opened at ₹1,756.00, touching the day’s high of ₹1,768.50 as of 03:04 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.