Power Finance Corporation Transfers Subsidiary to H.G. Infra Engineering for Rs. 8.16 Crore

1 min read     Updated on 29 Jul 2025, 01:23 PM
scanxBy ScanX News Team
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Overview

Power Finance Corporation (PFC) has completed the transfer of its wholly-owned subsidiary, Angul Sundargarh Transmission Limited, to H.G. Infra Engineering Limited for Rs. 8.16 crore. The transaction, completed on July 28, 2025, is part of PFC's strategic portfolio management. The subsidiary was established for the Eastern Region Generation Scheme-I. H.G. Infra Engineering, the successful bidder, is not related to PFC's promoter group. The subsidiary's contribution to PFC's financials was negligible. The sale complies with regulatory requirements and aligns with PFC's strategy to focus on core activities.

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*this image is generated using AI for illustrative purposes only.

Power Finance Corporation Limited (PFC), a leading public sector financial institution, has announced the completion of a significant transaction involving its subsidiary. The company has transferred its wholly-owned subsidiary, Angul Sundargarh Transmission Limited, to H.G. Infra Engineering Limited for a consideration of Rs. 8.16 crore (Rs. 8,16,49,841).

Transaction Details

The transfer was completed on July 28, 2025, marking a strategic move in PFC's portfolio management. Angul Sundargarh Transmission Limited was established for the development of the Eastern Region Generation Scheme-I (ERGS-I), highlighting its importance in the power sector infrastructure.

Buyer Information

H.G. Infra Engineering Limited emerged as the successful bidder for this transaction. It's noteworthy that the buyer does not belong to the promoter or promoter group of Power Finance Corporation, ensuring an arm's length transaction.

Financial Impact

According to the company's disclosure, the subsidiary's contribution to Power Finance Corporation's turnover, revenue, and net worth during the last financial year was negligible. This suggests that the transfer is unlikely to have a significant impact on PFC's overall financial position.

Regulatory Compliance

The transaction adheres to regulatory requirements:

  • It is not classified as a related party transaction.
  • The sale is not considered a slump sale.
  • The consideration for the transfer was determined in accordance with guidelines issued by the Ministry of Power, Government of India.

Strategic Implications

This move aligns with Power Finance Corporation's strategy to streamline its operations and focus on core activities. By transferring subsidiaries established for specific projects to capable operators, PFC can potentially optimize its resource allocation and improve overall efficiency.

Power Finance Corporation continues to play a crucial role in India's power sector, facilitating the development of various transmission and generation projects. This transaction demonstrates the company's active management of its portfolio and commitment to creating value for its stakeholders.

Historical Stock Returns for Power Finance Corporation

1 Day5 Days1 Month6 Months1 Year5 Years
+1.35%-0.99%-3.93%+2.88%-25.73%+513.20%
Power Finance Corporation
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Power Finance Corporation Completes Transfer of Two Transmission Subsidiaries

1 min read     Updated on 24 Jul 2025, 04:31 PM
scanxBy ScanX News Team
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Overview

Power Finance Corporation (PFC) has completed the transfer of two wholly-owned subsidiaries to private bidders. Raghanesda RE Transmission Limited was sold to Dineshchandra R. Agrawal Infracon Private Limited for ₹10.14 crore, while NER Expansion Transmission Limited was transferred to Resonia Limited for ₹13.00 crore. Both subsidiaries were originally owned by PFC Consulting Limited. The transactions are not related party deals and comply with regulatory guidelines. The financial impact is expected to be minimal as the subsidiaries' contributions to PFC's financials were reported as negligible.

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*this image is generated using AI for illustrative purposes only.

Power Finance Corporation Limited (PFC), a leading player in the Indian power sector, has successfully completed the transfer of two of its wholly-owned subsidiaries to private bidders, marking a significant move in the company's asset management strategy.

Transfer Details

PFC finalized the transfer of two subsidiaries:

  1. Raghanesda RE Transmission Limited: This subsidiary, established for developing transmission systems for renewable energy evacuation from Gujarat's Raghanesda area (3 GW under Phase-I), was transferred to Dineshchandra R. Agrawal Infracon Private Limited for ₹10.14 crore.

  2. NER Expansion Transmission Limited: Set up for the North-Eastern Region Expansion Scheme-XXV Part-A, this subsidiary was transferred to Resonia Limited for ₹13.00 crore.

Transaction Highlights

  • Both subsidiaries were originally owned by PFC Consulting Limited, a wholly-owned subsidiary of Power Finance Corporation.
  • The buyers, Dineshchandra R. Agrawal Infracon Private Limited and Resonia Limited, do not belong to the promoter or promoter group of PFC.
  • These transactions do not fall under related party transactions, ensuring transparency and compliance with regulatory guidelines.

Financial Implications

According to the LODR filing, the turnover, revenue, income, and net worth contributed by these subsidiaries during the last financial year were reported as negligible. This suggests that the transfer is unlikely to have a significant immediate impact on PFC's financial statements.

Strategic Significance

The transfer of these subsidiaries aligns with the broader strategy of streamlining operations and optimizing asset management in the power sector. By transferring these project-specific entities to specialized operators, PFC aims to ensure efficient development and operation of crucial transmission infrastructure.

Regulatory Compliance

The consideration for both transfers was determined in accordance with the guidelines issued by the Ministry of Power, Government of India. This adherence to regulatory norms underscores PFC's commitment to transparency and good governance in its divestment processes.

Power Finance Corporation's strategic move to transfer these subsidiaries demonstrates its focus on efficient capital allocation and project execution in the rapidly evolving Indian power sector. As the company continues to play a pivotal role in financing and developing India's power infrastructure, such transactions are likely to contribute to its overall operational efficiency and financial performance.

Historical Stock Returns for Power Finance Corporation

1 Day5 Days1 Month6 Months1 Year5 Years
+1.35%-0.99%-3.93%+2.88%-25.73%+513.20%
Power Finance Corporation
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