Desco Infratech Acquires 75% Stake in Biogas Developer SGAEPL

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AuthorAarav Shah|Published at:
Desco Infratech Acquires 75% Stake in Biogas Developer SGAEPL
Overview

Desco Infratech Limited is acquiring a 75% majority stake in Shri Green Agro Energies Private Limited (SGAEPL) for ₹40.50 lakh. SGAEPL specializes in Compressed Biogas (CBG) projects, marking Desco's strategic entry into sustainable infrastructure and green fuels, aiming to become a lead partner in financing and maintaining CBG plants.

Desco Infratech Ventures into Green Energy with SGAEPL Acquisition

Desco Infratech Limited announced the execution of a Memorandum of Understanding (MOU) to acquire a 75% majority stake in Shri Green Agro Energies Private Limited (SGAEPL). This strategic acquisition involves a cash consideration of ₹40.50 lakh, through which Desco will subscribe to 4,05,000 fully paid-up equity shares at face value.

SGAEPL, a 2022-incorporated entity, specializes in the development, construction, and operation of Compressed Biogas (CBG) projects. The target company has reported nil turnover for the past three financial years, positioning Desco as the lead partner and strategic investor. The remaining 25% shareholding will be retained by SGAEPL's original promoters to ensure operational continuity.

Diversification Strategy

The primary objective of this move is to diversify Desco Infratech's portfolio into sustainable infrastructure and green fuels. By entering the agro-energy space, the company aims to lead the financing and maintenance of CBG plants, aligning with broader renewable energy trends. The definitive Share Subscription Agreement is expected within 30 days, following the fulfilment of statutory conditions.

Company Profile and Order Book

Desco Infratech Limited, established in January 2011, operates as an infrastructure company specializing in Engineering, Planning, and Construction. Its existing expertise spans City Gas Distribution, Renewable Energy, Water, and Power sectors. The company currently has a market capitalization of over ₹150 crore and an order book standing at ₹345 crore as of September 30, 2025.

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