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.

Ceigall India has announced the establishment of a fully owned subsidiary company to spearhead the development of 130 MW solar power projects in Madhya Pradesh. This strategic corporate restructuring marks a significant step in the company's expansion into renewable energy infrastructure.

Strategic Subsidiary Formation

The creation of this wholly owned subsidiary represents a focused approach to managing and executing solar power projects. The subsidiary structure will provide dedicated resources and specialized management for the renewable energy initiatives in Madhya Pradesh.

Renewable Energy Expansion

This development demonstrates Ceigall India's strategic diversification into the renewable energy sector. The 130 MW solar capacity represents a substantial addition to the company's project portfolio and aligns with the growing demand for clean energy infrastructure in India.

Business Structure Benefits

The subsidiary model offers several operational advantages for project execution. It enables specialized focus on solar power development while maintaining clear corporate governance structures. This approach facilitates efficient project management and potential future expansion in the renewable energy segment.

The establishment of this subsidiary positions Ceigall India to capitalize on opportunities in Madhya Pradesh's renewable energy landscape while contributing to India's solar power development goals.