Isgec Heavy Engineering Ltd. has successfully completed its strategic acquisition of a 26% stake in FPEL HR1 Energy Private Limited, marking a significant milestone in the company's renewable energy expansion. The company received confirmation of the equity share allotment on December 17, 2025, following earlier agreements signed in October and updated in December.

Acquisition Details

Project Overview

FPEL HR1 Energy Private Limited is developing a solar power project on a captive basis in Ramanagar Village, Odhan, Mandi Kalanwali Tehsil, Sirsa District, Haryana. The project is designed to generate and supply solar power energy, aligning with Isgec Heavy Engineering's objectives to meet green energy needs and optimize energy costs.

Transaction Framework

The acquisition was structured through two comprehensive agreements:

These agreements establish the framework for Isgec Heavy Engineering's investment and future power purchase arrangements from the solar facility.

Regulatory Compliance and Disclosure

Isgec Heavy Engineering has maintained full regulatory compliance throughout the acquisition process. The company filed the completion update with BSE Ltd. and National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key compliance highlights include:

• Transaction classified as non-related party transaction
• No promoter or promoter group interest in FPEL HR1 Energy Private Limited
• Complete disclosure timeline from initial agreement to completion

Strategic Impact

This completed acquisition represents Isgec Heavy Engineering's commitment to sustainable energy solutions and cost optimization. The investment positions the company to benefit from renewable energy generation while supporting India's broader green energy transition. The solar project's captive nature ensures dedicated power supply for the company's operational requirements, potentially reducing long-term energy costs and carbon footprint.

Isgec Heavy Engineering Limited has received a penalty order from tax authorities under the Gujarat State GST Act, resulting in a total financial impact of ₹78.88 lakh. The company disclosed this development through a regulatory filing on December 16, pursuant to Regulation 30 of the SEBI Listing Regulations.

Penalty Details and Financial Impact

The State Tax Officer (1), Enforcement, Div-6, Vadodara imposed the penalty under the State GST Act for alleged violations related to Input Tax Credit claims. The company received the order on December 15, at 16:00:00 hours.

Nature of Alleged Violations

The State Tax Officer levied the tax demand alleging that the company claimed ineligible Input Tax Credit under Section 16(2) of the CGST Act. The specific allegations include:

• Claims from cancelled taxpayers
• Claims from non-genuine taxpayers
• Claims from non-existent taxpayers
• Claims from return defaulters

These violations relate to the company's GST compliance and input tax credit mechanisms, which are critical components of the goods and services tax framework.

Company's Response and Next Steps

Isgec Heavy Engineering has indicated that it will challenge the penalty order through the appropriate legal channels. The company stated in its disclosure that it "shall file an appeal under the Goods and Services Tax Act." This suggests the company disputes the allegations and believes it has grounds to contest the penalty.

The regulatory filing was made available on the company's website at www.isgec.com , ensuring transparency with stakeholders regarding this material development.

Regulatory Compliance

The disclosure was made under Regulation 30 read with Para A of Part A of Schedule III of the SEBI Listing Regulations, which requires listed companies to inform stock exchanges about material events that could impact their operations or financial position. The company filed this information with both BSE Limited and the National Stock Exchange of India Limited.