HYDERABAD: In a significant move aimed at easing investor compliance and broadening market participation, the state government has approved the conversion of the Telangana State Industrial Infrastructure Corporation Limited (TGIIC) from a private limited company to a public limited entity.
The decision was formalised through a Government Order (GO) dated April 14, 2025. The GO, not made public, was accessed by TNIE.
The decision follows the corporation’s issuance of bonds worth `9,995.28 crore through National Stock Exchange (NSE) by mortgaging 400 acres of land in Kancha Gachibowli. In view of this, TGIIC was listed on the NSE on December 11, 2024, attaining the status of a High Value Debt Listed Entity (HVDLE).
TGIIC operated under restrictions that limited the transfer of shares, prohibited invitations to subscribe to its securities and capped membership at 200 individuals. These limitations created compliance hurdles for certain categories of investors in the secondary market.
To resolve these issues and expand investor participation, the TGIIC board approved the conversion to a public limited company. Subsequently, the state government issued GO Ms No 12 on April 14, 2025, granting formal approval.
According to the GO, bonds and debentures issued by the corporation are currently being traded in the secondary market.
It further said: “Certain categories of investors in the secondary market are facing compliance-related issues as the corporation is a private limited entity, and some other categories of investors are restricted from making investments in securities issued by private limited companies. Thus, in order to have wider participation of bondholders or investors in the secondary market, it is now proposed to convert the status of the company from private limited to public limited.”
Additionally, the government has also approved an increase in the number of shareholders from four to seven. This will be implemented through a split of existing shares and the nomination of three additional shareholders on behalf of the Governor of Telangana, in accordance with Section 3 of the Companies Act, 2013.
