HEG receives NCLT approval for demerger scheme; shareholders to get 1:1 shares in HEG Graphite

HEG, a leading global manufacturer of graphite electrodes, on Wednesday said it had received approval from the National Company Law Tribunal (NCLT) for its demerger plan. The company said the NCLT had approved the Composite Scheme of Arrangement among HEG, HEG Graphite, and Bhilwara Energy.

The approval paves the way for the creation of two independently listed companies, with HEG shareholders set to receive one HEG Graphite share for everyone HEG share held.

The NCLT’s approval follows earlier approvals from the boards and shareholders of the companies, as well as no-objection letters from the BSE and NSE. The scheme had also previously been approved by the equity shareholders and secured and unsecured creditors of both HEG Limited and Bhilwara Energy Limited.

The company said the restructuring is designed to unlock long-term value for shareholders by giving investors direct and differentiated exposure to a mature, cash-generative graphite electrode business on the one hand and a fast-scaling growth platform focused on advanced materials, battery energy solutions, and renewable energy on the other.

Commenting on the development, Ravi Jhunjhunwala, Chairman, Managing Director & CEO, said, “HEG will continue to build on its global graphite electrode legacy, while the new company is a natural evolution of our expertise in carbon and advanced materials—extending it into the technologies that will power the next industrial era.”

“With capabilities spanning advanced battery materials, renewable power, storage, and hydro energy, we aim to build a differentiated, integrated platform that is globally competitive, positioned to scale, and capable of contributing meaningfully to India’s energy transition,” he further added.

The restructuring will create two distinct businesses, with HEG Graphite housing the single largest plant of its kind in the world and remaining focused on graphite electrodes, and HEG focused on advanced materials, backed by green power and CNI-based solutions.

Shares extend winning run

The company shares have continued to maintain a strong winning run, which began in May 2023, and has gained 284% so far, reaching ₹708 apiece. Earlier this month, the stock scaled its highest level since January 2019, bringing it closer to its all-time high of ₹991.

In terms of annual performance, the stock has delivered positive returns in each of the last three years, benefiting retail shareholders, who held a 26% stake in the company as of the June-ended quarter, as per the Trendlyne data.

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