HG Infra Engineering Limited has announced the completion of a significant stake transfer in one of its subsidiaries, marking a strategic divestment move. The company has transferred 49% of its stake in H.G. Khammam Devarapalle PKG-1 Private Limited to Neo Infra Income Opportunities Fund on March 30, 2026.

Transaction Details

The stake transfer was executed under a Securities Purchase Agreement dated January 15, 2026, with completion achieved on March 30, 2026. The transaction involves a total consideration of ₹233.77 crore for the entire Special Purpose Vehicle (SPV).

Financial Performance of Subsidiary

H.G. Khammam Devarapalle PKG-1 Private Limited contributed significantly to the parent company's consolidated financials for the financial year ended March 31, 2025.

Buyer Information

The buyer, Neo Infra Income Opportunities Fund, is a registered scheme under Neo Credit Alternatives Investment Trust, a Category II Alternative Investment Fund registered with SEBI. The fund is managed by Neo Alternative Asset Managers Private Limited, having its registered office in Mumbai. The company has confirmed that the buyer does not belong to the promoter, promoter group, or group companies.

Regulatory Compliance

The transaction has been disclosed under Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. HG Infra Engineering has confirmed that this transaction does not fall under related party transactions and is not structured as a slump sale.

Impact on Corporate Structure

Following the transfer of 49% stake, H.G. Khammam Devarapalle PKG-1 Private Limited ceases to be a wholly owned subsidiary of HG Infra Engineering Limited. However, with the company retaining 51% ownership until the second tranche completion, it continues to remain a subsidiary. The remaining 51% stake transfer is scheduled to be completed in accordance with the terms and conditions of the transaction documents by June 30, 2026.

H.G. Infra Engineering has announced the voluntary dissolution of 8 step-down wholly owned solar subsidiaries through the strike-off process. The company has obtained shareholder consent for the dissolution and will apply for strike-off with the Registrar of Companies, Jaipur, with completion expected within 3-4 months.

Regulatory Compliance and Disclosure

The company has made this disclosure under Regulations 30 and 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. All 8 subsidiaries have not commenced operations since their incorporation and will cease to be step-down wholly owned subsidiaries upon completion of the strike-off process.

Subsidiary Details and Timeline

The dissolution involves solar project companies incorporated in May and June of the previous year. The subsidiaries obtained shareholder consent for voluntary dissolution and are proceeding with the formal strike-off application process.

Corporate Structure Optimization

This strategic move represents the company's effort to streamline its corporate structure by removing non-operational entities from its portfolio. The dissolution process will eliminate administrative overhead associated with maintaining inactive subsidiaries while ensuring full regulatory compliance.

Financial Impact Assessment

Since none of the subsidiaries commenced operations post-incorporation, there is no impact on turnover, revenue, income, or net worth. The dissolution is purely an administrative action to optimize the corporate structure without any financial implications for the parent company's operations.