Ceigall India has announced a strategic acquisition to purchase all shares of Velgaon Power Transmission Limited for ₹18.90 million. This transaction represents a complete buyout that will bring the power transmission company under Ceigall India's full ownership.

Acquisition Details

The acquisition involves purchasing the entire shareholding of Velgaon Power Transmission Limited, making it a wholly-owned subsidiary of Ceigall India upon completion of the transaction.

Strategic Implications

This acquisition marks Ceigall India's expansion into the power transmission sector through the complete ownership of Velgaon Power Transmission. The transaction will enable the company to strengthen its presence in the power infrastructure segment and potentially leverage synergies between the two entities.

The ₹18.90 million investment demonstrates Ceigall India's commitment to growing its business portfolio through strategic acquisitions in the power and infrastructure sectors.

Ceigall India Limited has completed the acquisition of 100% equity shares of Velgaon Power Transmission Limited (VPTL) for ₹1.89 crores, making VPTL its wholly owned subsidiary. The transaction was formalized through a share purchase agreement with REC Power Development and Consultancy Limited on January 9, 2026.

Strategic Acquisition Details

The acquisition represents a strategic move by Ceigall India Limited to expand its presence in the power transmission sector. The transaction follows the company's receipt of a Letter of Intent dated November 23, 2025, for the "Establishment of 400/220 kV Velgaon Substation (GIS) through Tariff based Competitive Bidding (TBCB) Process."

Target Company Profile

Velgaon Power Transmission Limited is a recently incorporated entity in the power transmission and distribution sector. The company was established specifically as a wholly owned subsidiary of REC Power Development and Consultancy Limited.

Regulatory Compliance and Structure

The acquisition does not constitute a related party transaction, with no promoter or promoter group companies having any interest in the acquired entity. The transaction was conducted at arm's length and required no specific governmental or regulatory approvals.

Key compliance aspects include:

• Transaction disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• No related party transaction implications
• Cash-based acquisition structure
• Immediate subsidiary status upon completion

Project Integration and Business Impact

The acquisition enables Ceigall India Limited to fulfill the mandatory requirements of the RFP for the Velgaon Substation project. As per the bidding process conditions, acquiring VPTL shares was essential for undertaking the 400/220 kV substation establishment project.

This strategic acquisition aligns with Ceigall's core business operations in the power transmission and distribution sector, strengthening its project execution capabilities and expanding its subsidiary network in the power infrastructure domain.