Rs 345 crore order book: Desco Infratech executes MoU with Shri Green Agro Energies Pvt Ltd

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Rs 345 crore order book: Desco Infratech executes MoU with Shri Green Agro Energies Pvt Ltd

Upon the completion of the Share Subscription Agreement (SSA) and the necessary allotment of shares, SGAEPL will become a subsidiary of Desco Infratech Limited.

Desco Infratech Limited has officially executed a Memorandum of Understanding (MOU) to acquire a 75 per cent majority stake in Shri Green Agro Energies Private Limited (SGAEPL). This strategic acquisition involves a cash consideration of Rs 40.50 lakh, through which Desco will subscribe to 4,05,000 fully paid-up equity shares at face value. Upon the completion of the Share Subscription Agreement (SSA) and the necessary allotment of shares, SGAEPL will become a subsidiary of Desco Infratech Limited.

SGAEPL is a 2022-incorporated entity specializing in the renewable energy sector, specifically the development, Construction, and operation of Compressed Biogas (CBG) projects. While the target company has reported nil turnover for the past three financial years, the acquisition is structured to position Desco as the lead partner and strategic investor. The remaining 25 per cent shareholding will be retained by the original promoters of SGAEPL to ensure operational continuity in the project’s development.

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 to be executed within 30 days, following the fulfilment of statutory conditions such as the increase of SGAEPL’s authorised share capital.

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About the Company

Desco Infratech Limited, established in January 2011, operates as an infrastructure company specialising in Engineering, Planning and Construction across various sectors, including City Gas Distribution, Renewable Energy, Water and Power. The company offers a range of services encompassing pipeline laying, installation, testing, commissioning and operation & maintenance within these domains, catering to projects such as Piped Natural Gas (PNG) networks, power distribution cabling, water pipeline infrastructure and foundation work for Solar power projects, including collaborations with entities like Bharat Petroleum Corporation Limited and Adani Green Energy.

The company has a market cap of over Rs 150 crore and its Order Book stands at Rs 345 crore as of September 30, 2025. The shares of the company have a PE of 13x, an ROE of 26 per cent and an ROCE of 31 per cent. The stock is up by 25.3 per cent from its 52-week low of Rs 160 per share.

Disclaimer: The article is for informational purposes only and not investment advice.