HEG Limited is holding investor roadshows to outline its Greentech business plans ahead of a proposed demerger. The company plans significant capital expenditure for battery materials and green power generation.
HEG Ltd Eyes Greentech Demerger, Roadshows Underway
HEG Limited is actively engaging with institutional investors through a Non-Deal Roadshow (NDR) in Mumbai on July 15-16, 2026. The primary focus is to update 12-15 fund houses on its burgeoning Greentech business, a crucial step in its proposed Composite Scheme of Arrangement.
Reader Takeaway: Demerger aims to unlock value; execution and NCLT approval key.
What just happened
HEG Limited is conducting investor roadshows to discuss its Greentech business, which is slated for demerger into a separate listed entity. The company is seeking to provide a detailed overview of its strategic roadmap and financial projections for this segment to potential investors.
Why this matters
This move signifies HEG's strategic intent to unlock shareholder value by allowing its established graphite electrode business and the high-growth Greentech segment to be valued independently. The Greentech business has ambitious plans in advanced battery materials, energy solutions, and green power generation.
The backstory
HEG Limited, traditionally known for its graphite electrodes and power assets, is undergoing a significant corporate restructuring. The Composite Scheme of Arrangement aims to separate the Greentech vertical to allow focused management and market valuation. The National Company Law Tribunal (NCLT), Indore Bench, has heard the petition for this scheme and reserved its order, indicating a significant step towards finalization.
What changes now
The restructuring will lead to two distinct entities: HEG Limited, retaining graphite electrodes, thermal/hydro power, and its stake in GrafTech USA, and HEG Greentech, a new listed company focused on advanced battery materials, battery energy solutions, and green power. This separation is expected to provide clearer strategic direction and investment focus for each business.
Risks to watch
Key watch points include the final NCLT approval for the scheme of arrangement, which is still pending. Additionally, the Greentech business's ambitious capital expenditure of ₹5,500 crore, funded by a significant debt component of ₹4,000 crore, raises concerns about financial leverage. Growth targets are also subject to market conditions and execution capabilities.
Peer comparison
HEG's move into battery materials and green energy aligns with broader industry trends. Companies in the renewable energy and battery storage sectors are attracting significant investor interest. HEG's existing cash flows from its debt-free hydropower assets, generating over ₹300 crore annually, could provide a stable funding base for its Greentech expansion, differentiating it from some highly leveraged peers.
Context metrics (time-bound)
HEG Greentech targets a total capex roadmap of ₹5,500 crore. This includes ₹1,500 crore in equity and ₹4,000 crore in debt. Key capacity targets are 60,000 MT for anode material by FY32, 6 GWh for battery energy solutions by H2 FY27, and 754 MW for green power generation by FY28. Steady-state ROCE for Greentech is projected at ~17% by FY30.
What to track next
Investors should closely monitor the NCLT's final order and the subsequent timeline for the scheme's implementation. The company's ability to secure funding, execute its ambitious capex plans, and achieve its growth targets in the competitive battery and green energy markets will be critical.