Shares of HEG Advanced Materials climbed 15% as subsidiary Replus Engitech secured a ₹218 crore lithium-ion battery order from Indus Towers. The company is also moving toward a demerger of its graphite electrodes business, which is expected to list separately by the end of October, creating two independent entities with different strategic focuses.
Shares of HEG Advanced Materials have climbed by about 15% in three trading sessions, moving from ₹215 to ₹248 by September 21. This price action follows the company’s recent announcement regarding a new business order and ongoing corporate restructuring plans.
The primary driver for the recent market interest is a ₹218 crore contract secured by Replus Engitech, a subsidiary of HEG Advanced Materials. The company will supply lithium-ion battery banks to Indus Towers, with the project slated for completion by March 31, 2027. This order provides revenue visibility for the battery energy solutions segment, which is a key part of the company's future business focus.
Beyond the new order, investors are also tracking the company’s planned demerger. HEG Advanced Materials is separating its established graphite electrodes business into a new entity, currently referred to as HEG Graphite. The plan involves listing this graphite-focused company separately, with expectations for the listing process to be completed by the end of October.
Once the demerger is effective, the existing HEG Advanced Materials entity will retain operations related to advanced materials, battery energy solutions, and green power. This structural change is designed to create two separate, independent companies, each with a specific business mandate.
The management team has also realigned to support this separation. Ravi Jhunjhunwala has taken on the role of Chairman, Managing Director, and Chief Executive Officer of the graphite company. Meanwhile, Riju Jhunjhunwala has been appointed to lead HEG Advanced Materials in the same capacity for a five-year term.
For shareholders, the situation presents two distinct areas to monitor. First, the execution of the ₹218 crore Indus Towers order will be important for the performance of the energy solutions segment. Second, the progress of the demerger—specifically the final listing of the graphite electrodes business—will determine how the market values the two separate entities in the future. Shareholders who held the stock on the record date of September 7 are set to receive one share of the new graphite entity for every share held in the parent company.