HEG Ltd to Convene Stakeholder Meetings for NCLT Restructuring Scheme

HEG Limited will host important meetings on Tuesday, May 5, 2026, for its equity shareholders, secured creditors, and unsecured creditors. These gatherings are essential for gaining approval on a Composite Scheme of Arrangement, as directed by the National Company Law Tribunal (NCLT).

What just happened

The company has outlined the logistics for the May 5, 2026, meetings, which follow NCLT Indore Bench's directive on March 26, 2026. Shareholders and creditors will vote on a Composite Scheme of Arrangement involving HEG Limited, HEG Graphite Limited, and Bhilwara Energy Limited. Remote e-voting is available from May 1 to May 4, 2026, with a cut-off date of April 28, 2026. All meetings will take place virtually via Video Conferencing (VC) or other audio-visual means.

Why this matters

This development marks a significant procedural step in HEG's ongoing corporate restructuring. The Composite Scheme of Arrangement, if approved by stakeholders and the NCLT, aims to reorganize the company's structure by demerging its graphite electrode business into a new entity and merging its power assets. This could lead to a more streamlined operational structure and potentially unlock value for shareholders.

The backstory

The proposed restructuring aims to reorganize HEG's corporate structure. The plan involves transferring HEG's graphite electrode operations to a new entity, HEG Graphite Limited, which will then be renamed HEG Limited. Concurrently, Bhilwara Energy Limited, which owns hydroelectric assets, will merge with the current HEG Limited, to be renamed HEG Greentech Limited. Earlier this year, HEG received observation letters from the BSE and NSE in January 2026. The company expects the full NCLT process to conclude by June-July 2026.

What changes now

• Shareholders and creditors will vote on the proposed Composite Scheme of Arrangement.
• Approval from these stakeholders is a prerequisite for the NCLT to grant final sanction.
• The company's structure may be significantly altered, potentially leading to new listed entities or a consolidated corporate form.
• If approved, HEG Graphite Limited will be renamed HEG Limited, and the existing HEG Limited will be renamed HEG Greentech Limited.
• The scheme aims to create operational efficiencies and potentially unlock value for stakeholders.

Risks to watch

• The success of the scheme is contingent on the approval of equity shareholders and creditors.
• Any adverse voting outcomes or prolonged NCLT review periods could delay or derail the restructuring.

Peer comparison

HEG Limited operates in the graphite electrode sector, a competitive landscape. Its primary competitors include Graphite India Limited, a pioneer in India for graphite electrodes and specialty products. Globally, Tokai Carbon Co., Ltd. and GrafTech International are significant players, both manufacturing graphite electrodes used in electric arc furnaces for steel production.

What to track next

• The voting results from the shareholder and creditor meetings scheduled for May 5, 2026.
• The final order and approval from the National Company Law Tribunal (NCLT).
• Any further announcements from HEG Limited regarding the scheme's progress or any changes to the proposed structure.
• The potential creation of new entities or the rebranding of existing ones as per the scheme.
• The market's reaction to the scheme's approval and implementation.
• The eventual financial and operational performance of the restructured entities.