HG Infra Engineering shares surged more than 9% on Monday after the company announced the transfer of a 49% stake in its special purpose vehicle (SPV), H.G. Raipur Visakhapatnam OD-5 Private Limited, to Neo Infra Income Opportunities Fund (NIIOF).
At around 10:26 AM, the stock was trading near its intraday high after touching ₹603.90, compared to the previous closing price of ₹548.65. The stock opened at ₹560 and witnessed strong buying interest, with trading volumes crossing 13.10 lakh shares.
The company informed stock exchanges that it has successfully completed the transfer of a 49% stake in H.G. Raipur Visakhapatnam OD-5 Private Limited. Following the transaction, the SPV will no longer remain a wholly-owned subsidiary of HG Infra Engineering. However, it will continue to be a subsidiary until the transfer of the remaining 51% stake is completed.
The stake sale is part of an agreement announced earlier on December 18, 2025. The total transaction value stands at ₹377.40 crore. HG Infra has already received the first tranche of ₹121.80 crore on June 5, 2026, against the transfer of the initial 49% stake. The balance consideration is expected to be received on or before September 30, 2026, upon completion of the transfer of the remaining stake.
According to the company's disclosure, the SPV reported revenue of ₹325.59 crore during FY26, contributing around 6.22% to HG Infra's consolidated revenue. The entity also accounted for approximately 4.28% of the company's consolidated net worth, with a net worth of ₹139.59 crore as of March 31, 2026.
The buyer, Neo Infra Income Opportunities Fund, is a registered investment scheme under Neo Credit Alternatives Investment Trust and is managed by Neo Alternative Asset Managers Private Limited. HG Infra clarified that the buyer is not part of the promoter group and that the transaction does not constitute a related-party deal.
The development appears to have boosted investor sentiment, as the transaction will unlock capital for the company while allowing it to monetize a mature infrastructure asset. Market participants also viewed the inflow of funds positively, supporting the sharp rally in HG Infra Engineering shares during the session.