Megha Engineering's Reddy Family Agrees on ₹15K Cr Stake Transfer: Here's How It Will Work

One of India’s wealthiest families and the promoters of Megha Engineering & Infrastructures Ltd (MEIL), the Reddys from Hyderabad have reportedly agreed on an ownership stake transfer of the conglomerate. The group, which has interests ranging from engineering, procurement, and construction (EPC) to electric vehicles (EVs), will see MEIL founder and executive chairman Pamireddy Pitchi Reddy transfer his 51% stake in the holding company to his nephew, P.V. Krishna Reddy.

According to a report by The Economic Times (ET), billionaire Krishna Reddy is raising ₹12,000–15,000 crore to buy his uncle’s 51% stake in the holding company, where he already owns 49%. The deal, reportedly finalised with the help of a former Chief Justice of India, is expected to be completed by March 2027.

Reddy is in talks with Kotak, Varde, Farallon, and Deutsche Bank and plans to sell assets such as a power transmission project in Uttar Pradesh and the group’s city gas unit to raise funds. He expects to generate ₹7,000 crore from the transmission deal alone. So far, only ₹1,000 crore has been paid. The operations and maintenance (O&M) unit of Olectra Greentech, the group’s listed firm, may also be sold, according to ET.

Olectra Greentech Ltd shares rose 0.97% to ₹1,234 on May 9, following the report.

P.P. Reddy, a farmer’s son, founded Megha Engineering Enterprises in 1989 to make small pipes for municipalities and later expanded into large-scale infrastructure projects, including dams, roads, power plants, and gas networks.

Renamed Megha Engineering & Infrastructures in 2006, the company is now run by his nephew, and MD P.V. Krishna Reddy, who joined in 1991. Megha is known for winning and executing large-scale infrastructure projects in India, including India’s largest ₹1.14 lakh crore ($14 billion) lift irrigation project in Telangana, which began operations in 2019.

MEIL’s other major infrastructure wins include the Zojila Road Tunnel, Char Dham Rail Tunnel, Thane-Borivali twin tunnel, Machilipatnam Port, Tuticorin Thermal Project, BKC bullet train terminal, and the Kaleshwaram Lift Irrigation Project. However, the company has also faced legal and competitive challenges.

Last month, EPC giant L&T took the Mumbai Metropolitan Region Development Authority (MMRDA) to the Supreme Court after its bids for two key coastal road projects in Mumbai were rejected in favour of MEIL. The ₹14,000 crore contracts were subsequently scrapped by MMRDA amid the controversy.

After Megha’s purchase of electoral bonds worth ₹966 crore came to light last year, the company faced allegations of receiving government contracts in return—claims it has consistently denied.

Krishna Reddy has led the group’s global expansion, including the acquisition of Italy’s Drillmec SpA and Petreven SpA from the Trevi Group for 116.4 million euro in 2020, strengthening MEIL’s presence in Asia, Africa, and Latin America. Drillmec, which manufactures oil and gas rigs, operates in countries including Venezuela and Mexico.

MEIL also formed a joint venture with China’s BYD to produce electric vehicles, but the plan remains stalled due to Press Note 3, which requires government approval for investments from countries that share a land border with India—particularly aimed at China.