HEG Limited has disclosed that its associate company Bhilwara Energy Limited has announced a significant acquisition in the renewable energy sector. The company entered into a Share Purchase Agreement to acquire 100% equity shares of Mandakini Jal Urja Private Limited from Statkraft IH Holding AS, subject to customary conditions precedent.

Acquisition Details

The acquisition encompasses the 76MW Phata Byung Hydroelectric Project, strategically located in Rudraprayag district, Uttarakhand. This run-of-the-river hydroelectric project is currently under construction and represents Bhilwara Energy's first venture into Uttarakhand's hydropower sector.

Strategic Impact on Portfolio

Upon completion of the transaction, Bhilwara Energy Limited will become the sole owner of the project, marking a significant milestone in strengthening its hydropower portfolio in India. The acquisition will increase the company's total hydro capacity to 375MW, reinforcing its position in India's renewable energy landscape.

Management Commentary

Riju Jhunjhunwala, Managing Director of Bhilwara Energy, emphasized the acquisition's alignment with LNJ Bhilwara Group's commitment to building high-quality renewable energy assets. He stated that the project strengthens their hydropower portfolio and reinforces their long-term approach of investing in dependable, environmentally responsible power infrastructure.

Fernando de Lapuerta, Executive Vice President International at Statkraft, noted that the divestment aligns with their global strategy to streamline the international portfolio and focus on select core markets. He expressed confidence in Bhilwara Energy's capability and long-term vision to advance the project.

Transaction Advisory

The transaction involved multiple advisory firms to ensure smooth execution:

Company Background

LNJ Bhilwara Group, established in 1961, operates as one of India's leading business conglomerates with strong presence across textiles, graphite electrodes, power generation, and IT-enabled services. Through its energy arm, Bhilwara Energy Limited, the Group has developed and operated several hydro and renewable power projects across the country, contributing significantly to India's clean energy transition.

HEG Limited has disclosed a regulatory compliance matter concerning its wholly-owned subsidiary Bhilwara Infotechnology Limited (BIL) through an official intimation to stock exchanges on December 11, 2025. The disclosure pertains to a compounding order issued by the Reserve Bank of India's Foreign Exchange Department for violations under the Foreign Exchange Management Act (FEMA).

RBI Compounding Order Details

The regulatory action stems from contraventions under Para 9(1)(B) of Schedule I of FEMA 20/2000-RB, specifically related to delayed reporting of Form FC-GPR by Bhilwara Infotechnology Limited. The company filed a compounding application under the Foreign Exchange (Compounding Proceedings) Rules, 2024 to address the violation.

Nature of Violation

The violation relates to the delay in reporting of FC-GPR (Foreign Collaboration-General Permission Route) post-allotment of merger shares. According to the company's disclosure, this delay occurred due to oversight and unawareness of the specific provisions under FEMA regulations. The matter required filing a compounding application to resolve the regulatory non-compliance.

Financial Impact Assessment

HEG Limited has explicitly stated that the compounding order and associated penalty will have no material impact on the company's financial, operational, or other activities. The relatively modest penalty amount of ₹43,550.00 reflects the administrative nature of the violation rather than any substantive regulatory breach.

Regulatory Compliance Framework

This disclosure was made pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Specifically, it falls under Clause 20 of Para A of Part A of Schedule III, which mandates disclosure of material events and information by listed entities.

The company has fulfilled its obligation to inform both BSE Limited and National Stock Exchange of India Limited about this regulatory development, ensuring transparency with stakeholders and maintaining compliance with listing requirements.