HEG Ltd has finalized its demerger, with September 7, 2026, set as the record date. The move will split the company into two distinct listed entities: one focusing on the core graphite electrodes business and the other on advanced materials and energy solutions. This restructuring also includes the merger of Bhilwara Energy Ltd into the parent entity.
HEG Ltd has officially moved forward with its corporate restructuring, setting September 7, 2026, as the record date for its upcoming demerger. This significant change follows the sanction of the composite scheme by the NCLT Indore Bench on August 18, 2026. The process will split the current business operations into two separate, publicly traded companies, aimed at creating focused entities for different areas of operations.
Under the restructuring, the company will divide its businesses. One entity, to be renamed HEG Ltd, will function as a pure-play graphite electrode manufacturer. The current listed entity, which will retain the advanced materials, battery energy solutions, and green power businesses, will be renamed HEG Advanced Materials. As part of this transition, shareholders of HEG will receive shares in the new graphite entity on a 1:1 basis.
In addition to the demerger, the company is finalizing the amalgamation of Bhilwara Energy Ltd. Under this arrangement, HEG will issue eight equity shares of face value ₹2 for every seven equity shares held in Bhilwara Energy. The scheme is set to become effective on September 1, 2026, just before the record date.
Leadership roles have also been aligned with the new structure. Ravi Jhunjhunwala is appointed to lead the graphite business as Chairman, Managing Director, and CEO. Meanwhile, Riju Jhunjhunwala will take the helm at HEG Advanced Materials, also serving as Chairman, MD, and CEO for a five-year term. The board of HEG Advanced Materials will also include five newly appointed non-executive independent directors to oversee its operations.
For investors, this split marks a shift in how the business is viewed. The graphite electrode division is a more mature business, primarily tied to the global steel industry. Because of this, it is susceptible to cycles in steel demand and pricing, which can cause fluctuations in revenue and profit margins. Investors should watch how this pure-play entity manages its operations once separated from the newer, growth-oriented ventures.
Conversely, HEG Advanced Materials represents a move into newer, high-growth areas such as synthetic graphite anode material for batteries and graphene applications. While these fields offer potential for future growth, they carry different risks. These include the risk of delay in scaling production, the need for continued investment in technology, and the challenge of establishing a strong market presence in new segments. The success of this entity will depend heavily on the company's ability to execute these capital-intensive projects effectively.
Following the demerger, investors may track the listing of the new graphite entity and monitor how the stock price adjusts for both companies. The primary focus for the market will be the performance stability of the graphite business and the progress of the green-tech projects within the advanced materials unit.