HEG demerger news: Record date today | Ratio, latest updates, other details in 5 points

HEG demerger news: HEG share price will remain in focus in Monday's trading session as the stock will undergo demerger today, as the company prepares to separate its graphite electrode business into a standalone entity.

On Friday, HEG share price closed 0.38% lower at ₹725.50 apiece on NSE. The market capitalisation of the HEG stood at ₹11,579 crore, as of 4 September.

HEG demerger details

1] HEG demerging companies: Under the demerger scheme, the graphite electrode business will be transferred to a separate entity, HEG Graphite Limited, which is proposed to be renamed HEG Limited and separately listed as a pure-play graphite electrode company. The existing listed company, HEG Advanced Materials Limited, will retain its advanced materials, battery energy solutions and green power businesses.

2] HEG demerger record date: The record date for determining shareholders eligible for shares in the demerged graphite business is today, September 7, 2026.

3] HEG demerger ratio: The demerger will follow a 1:1 ratio. This means shareholders holding shares of HEG Advanced Materials Limited as of the record date will receive one fully paid-up equity share of face value ₹2 each in HEG Graphite Limited for every one fully paid-up ₹2 equity share held in HEG Advanced Materials Limited.

As part of the amalgamation arrangement, HEG Advanced Materials Limited will also issue eight equity shares of ₹2 each to existing shareholders of Bhilwara Energy Limited, excluding HEG Advanced Materials Limited, for every seven equity shares of ₹10 each held in Bhilwara Energy.

Following the record date, the share price of HEG Advanced Materials Limited will be adjusted to reflect the value of the demerged graphite electrode business. The stock will trade on an ex-demerger basis from September 7.

4] Listing: HEG Graphite is expected to be listed on the stock exchanges in the second half of October 2026. Following its listing, the company is proposed to be renamed HEG Limited.

5] Management: Ravi Jhunjhunwala will serve as Chairman, Managing Director and Chief Executive Officer of HEG Graphite Limited with effect from September 1, 2026. He will also continue as a director on the board of HEG Advanced Materials Limited.

"I warmly congratulate Riju on his appointment as Chairman, MD & CEO of HEG Advanced Materials. He brings the vision and discipline to lead a platform that carries forward five decades of the Group's expertise in carbon into advanced materials, battery energy solutions and renewable energy. I am confident that under his leadership, HEG Advanced Materials will scale into a differentiated, globally competitive business and create enduring value for all its stakeholders," said Mr. Ravi Jhunjhunwala, Chairman & Managing Director, HEG Ltd.

Meanwhile, Riju Jhunjhunwala has been appointed Chairman, Managing Director and CEO of HEG Advanced Materials Limited for a five-year term, subject to shareholder approval.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.