POWERGRID Acquires Lakadia II Power Transmission for ₹18.43 Crore

Target Entity: Lakadia II Power Transmission Limited

Type of Deal: 100% Acquisition under Tariff Based Competitive Bidding (TBCB) on Build, Own, Operate, and Transfer (BOOT) basis

Stake/Capacity: 100% stake acquired. The project involves establishing a transmission system for integrating 7500MW of power from Renewable Energy (RE) Projects in the Lakadia REZ in Gujarat (Phase 11).

Deal Value: The acquisition was completed for an aggregate value of approximately ₹18.43 Crore. This includes 50,000 equity shares acquired at par value of ₹10 each, along with the assets and liabilities of Lakadia II Power Transmission Limited as of the acquisition date (12.10.2026). The final acquisition price is subject to adjustment based on the audited accounts of the company as of the acquisition date.

Funding Source: Cash consideration (internal accruals or other sources not specified).

Financial Impact: Not explicitly disclosed in terms of future revenue contribution, EBITDA impact, or accretion/dilution. The target company is a newly incorporated Special Purpose Vehicle (SPV) and has not commenced commercial operations, thus it has no turnover for the last 3 years.

Timeline: The acquisition was completed on 12.10.2026 as per the timelines furnished by the Bid Process Coordinator. The project is yet to be built and commissioned.

Strategic Rationale: The acquisition was made pursuant to POWERGRID being selected as the successful bidder under the Tariff Based Competitive Bidding process. The project aligns with POWERGRID's main line of business (transmission of power) and is for the expansion of inter-state transmission capacity to support the integration of large-scale renewable energy in Gujarat. The project comprises:

• Establishment of a new 765/400kV Lakadia-II Sub-station in Gujarat.
• Construction of 765kV transmission lines traversing through Gujarat.
• Installation and commissioning of a Synchronous condenser at the Lakadia-II Sub-station.

Approval Status: The acquisition has been completed. Requisite approvals for the transfer of the SPV were obtained by the Bid Process Coordinator (RECPDCL) prior to acquisition. Post-acquisition, approvals for the Grant of Transmission License and Adoption of Transmission Charges are to be obtained from the Central Electricity Regulatory Commission (CERC) by Lakadia II Power Transmission Limited.

Other Key Details:

• Related Party Transaction: The acquisition is not a related party transaction. POWERGRID had no prior interest in the entity.
• Bid Process Coordinator: REC Power Development and Consultancy Limited (RECPDCL).
• Incorporation Date of Target: Lakadia II Power Transmission Limited was incorporated on 09.05.2026 by the Bid Process Coordinator.
• Regulatory Framework: The acquisition was conducted under the "Guidelines Encouraging Competition in Development of Transmission Projects" and "Tariff based Competitive Bidding Guidelines for Transmission Service" notified by the Ministry of Power (MoP).
• Regulatory Reference: This disclosure is made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.