H.G. Infra Engineering Invests ₹48.52 Cr to Expand into Battery Storage

The investment of ₹48.52 crore from H.G. Infra Engineering Limited into its subsidiary, H.G. Banaskantha Bess Private Limited, follows a rights issue. The subsidiary was incorporated on December 3, 2024, with an authorized capital of ₹79.02 lakh and a paid-up capital of ₹15.00 lakh as of March 23, 2026. This move marks H.G. Infra's significant entry into the battery energy storage system (BESS) sector.

The Investment Details

H.G. Infra Engineering Limited announced on March 23, 2026, that it acquired equity shares in its wholly-owned subsidiary, H.G. Banaskantha Bess Private Limited, through a rights issue. The total investment for this acquisition is ₹48.52 crore. This capital infusion is aimed at expanding the company’s operations into the battery energy storage system (BESS) sector.

Strategic Diversification

This move diversifies H.G. Infra Engineering beyond its core infrastructure construction business into the high-growth renewable energy and energy storage market. Entering the BESS sector aligns with India's focus on grid stability and renewable energy integration, presenting significant future potential.

Company Background

H.G. Infra Engineering Limited is a prominent Indian infrastructure company specializing in roads, highways, railways, and metro projects. The company has recently entered the renewable energy sector, acquiring solar subsidiaries in June 2024, signaling a strategic pivot towards green energy.

Impact of New Venture

H.G. Infra Engineering now has a dedicated entity for its BESS market foray. The company diversifies its revenue streams by entering the energy storage sector. It is positioning itself to capitalize on growing demand for energy storage in India's power grid. The subsidiary will need significant operational development and investment to establish its presence.

Challenges and Risks

The subsidiary, H.G. Banaskantha Bess Private Limited, was incorporated on December 3, 2024, and reported no turnover as of March 31, 2025, indicating its early stage. While the transaction is at arm's length except for existing shareholding, it is classified as a related-party transaction. In January 2026, the company was involved in a CBI investigation concerning bribery allegations against officials, who were later granted bail. Previous regulatory issues include NHAI penalties totaling ₹1 crore in September 2024 and an Income Tax notice for alleged underreporting of income for FY23-24. A tax penalty of ₹1.42 crore for TDS delays was also issued in October 2025.

Market Landscape

Leading Indian energy companies such as Tata Power and Adani Green Energy are actively developing BESS projects. Sterling and Wilson Renewable Energy, an EPC provider, is expanding into storage integration, while battery manufacturers like Exide Industries are entering the BESS market. H.G. Infra's entry targets a sector attracting substantial investment and policy support, positioning it against established and emerging players.

Future Outlook

Investors will be watching for details on the specific projects H.G. Banaskantha Bess Private Limited will undertake in the BESS sector. Key areas to track include the timeline for commencing commercial operations and generating revenue, future capital allocation plans for the subsidiary's growth, and the company's strategy for integrating BESS with renewable energy sources. The outcomes of ongoing legal and regulatory investigations, alongside performance metrics of the new BESS business unit, will also be important.