Ceigall India Limited's Management Committee has approved strategic acquisitions and subsidiary incorporations in its meeting held on January 02, 2026, marking significant expansion moves across power transmission, renewable energy, and infrastructure development sectors.

Strategic Acquisition in Power Transmission

The Management Committee approved the signing of a Share Purchase Agreement to acquire 100% shares of Velgaon Power Transmission Limited (VPTL), a wholly owned subsidiary of REC Power Development and Consultancy Limited. The acquisition details are structured as follows:

This acquisition follows Ceigall India's selection as the preferred bidder for the "Establishment of 400/220 kV Velgaon Substation (GIS)" project through the Tariff Based Competitive Bidding (TBCB) process, as communicated via Letter of Intent dated November 24, 2025. VPTL was incorporated on March 29, 2025, with an authorized and paid-up share capital of ₹5.00 lakh divided into 50,000 equity shares.

Renewable Energy Expansion

The committee approved the incorporation of Ceigall Green Energy MP Limited as a wholly owned subsidiary to implement solar power projects in Madhya Pradesh. The subsidiary formation parameters include:

This subsidiary will execute multiple Letter of Awards received from Madhya Pradesh Urja Vikas Nigam Ltd. (MPUVNL) for Solar PV based Power Plants, focusing on grid-connected solar power projects under the renewable energy initiative.

Infrastructure Development Initiative

The Management Committee also approved the incorporation of Ceigall Indore Ujjain Greenfield Highway Limited as a step-down subsidiary. This Special Purpose Vehicle will be established through Ceigall Infra Projects Private Limited, the company's wholly owned subsidiary.

The project involves construction of the Indore Ujjain Greenfield Access Control highway, awarded by Madhya Pradesh Road Development Corporation Limited on December 28, 2025.

Regulatory Compliance and Corporate Governance

The Management Committee meeting commenced at 02:45 P.M. (IST) and concluded at 04:00 P.M. (IST) on January 02, 2026. All approvals were made in accordance with powers conferred by the Board of Directors and comply with Regulation 30 of SEBI (LODR) Regulations, 2025.

The company has provided comprehensive disclosures as required under SEBI Listing Regulations, including detailed annexures covering acquisition parameters, subsidiary incorporation details, and regulatory compliance requirements. Company Secretary Megha Kainth (Membership no: F7639) digitally signed the regulatory filing, confirming all approved transactions involve cash considerations and align with the company's strategic expansion across multiple infrastructure sectors.

Ceigall India shares will be in focus following the announcement that its wholly owned subsidiary, Ceigall Infra Projects Private Limited, has secured a significant infrastructure contract. The company received a Letter of Award worth ₹1,089.00 crores from Madhya Pradesh Road Development Corporation Limited for the construction of a 48.10 km Indore-Ujjain highway project.

Project Details and Scope

The awarded project involves the construction of the Indore-Ujjain Greenfield highway, featuring a 4-lane configuration with paved shoulders. The comprehensive infrastructure development spans 48.10 kilometers, starting from Km. 0.000 near Pitra Parvat and terminating at Km. 48.100 at the Simhastha bypass (km 2.600). The project will be executed under the Hybrid Annuity Mode (HAM), a public-private partnership model commonly used for highway construction projects.

Market Performance and Order Book Status

Shares of Ceigall India ended 3.20% higher at ₹259.85 in the latest trading session. However, the stock has declined 24% so far this year and remains 29% below its 52-week high of ₹366.00. The company's total order book currently stands at ₹14,237.00 crores, with order inflows worth ₹5,386.00 crores recorded so far this financial year, surpassing the earlier guidance of ₹5,000.00 crores.

Management Commentary

Commenting on the development, Ramneek Sehgal, Chairman & Managing Director, Ceigall India Limited, said, "The Indore–Ujjain Greenfield Highway is a strategically important infrastructure project for Madhya Pradesh. Receiving this LOA from MPRDC reinforces our strong execution capabilities in complex HAM projects and our commitment to building high-quality road infrastructure. We look forward to delivering this project with a focus on safety, durability and timely execution."

Sehgal previously indicated that the infrastructure construction company has surpassed its full-year order inflow guidance for the current fiscal year, with the company eyeing 10-15% revenue growth.

Strategic Significance

This substantial infrastructure contract reinforces Ceigall India's position in the highway construction sector through its subsidiary operations. The Indore-Ujjain corridor represents a significant transportation link in Madhya Pradesh, with the greenfield development expected to enhance connectivity between these major cities. The project is expected to play a critical role in easing traffic congestion and enhancing access to key economic and religious hubs in Madhya Pradesh.

The LOA further strengthens Ceigall's robust order book in the roads and highways segment and underscores its growing footprint in executing large-scale hybrid annuity projects for state road development authorities.