HEG Advanced Materials Shares Hit 5% Upper Circuit After ₹217.56 Crore Indus Towers Order
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HEG Advanced Materials shares hit the 5% upper circuit after subsidiary Replus Engitech received a ₹217.56 crore Indus Towers order for lithium-ion battery banks, adding a fresh contract to its post-demerger business.
Shares of HEG Advanced Materials rose 5% to hit the upper circuit at ₹248.90 on Monday after its subsidiary Replus Engitech received orders worth ₹217.56 crore from Indus Towers for the supply of lithium-ion battery banks. The stock opened at ₹243.85, compared with Friday's close of ₹237.05, before touching its upper circuit soon after the start of trading.
The order value includes GST and is to be executed by March 31, 2027, or such later date as may be mutually agreed by the two companies, HEG Advanced Materials said in a regulatory filing. The company also said the transaction does not qualify as a related-party transaction and that its promoters, promoter group and group companies have no interest in the entity awarding the contract.
Replus Engitech is part of HEG Advanced Materials' battery energy solutions business and has capabilities in lithium-ion technology, battery management systems and energy management systems. The Indus Towers order adds a sizeable commercial contract to the business as the company begins operating under its new structure following the recent demerger.
The contract involves the supply of lithium-ion battery banks for Indus Towers, one of India's largest telecom infrastructure companies. HEG Advanced Materials has not disclosed the volume of battery banks, payment terms or the expected margin from the order, making execution and the eventual revenue contribution key monitorables.
The ₹217.56 crore order is also sizeable relative to the company's recent operations, although the comparison needs to account for the fact that the contract value includes GST while reported revenue is generally shown net of such taxes.
HEG Demerger Brings Battery Business Into Focus
The order comes shortly after HEG completed its business restructuring, under which the graphite electrode operations were separated from its advanced materials and energy businesses. The existing listed company was renamed HEG Advanced Materials and retained the battery energy solutions, advanced materials and green power businesses, while the graphite electrode business moved into a separate entity.
The restructuring has changed the way investors assess the company, with the battery and energy businesses now forming part of the listed HEG Advanced Materials entity. Replus Engitech's Indus Towers contract gives the market a fresh order win to track as the company builds out that portfolio.
HEG Advanced Materials Share Price
The 5% move took HEG Advanced Materials shares to ₹248.90 on the NSE, marking the stock's upper circuit for the session. The shares had closed at ₹237.05 on Friday.
The stock has been volatile following the demerger, making the latest order an important near-term business trigger. Investors will now track the pace of execution and the contribution from the battery business as HEG Advanced Materials operates with its post-demerger portfolio.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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