HEG Advanced Materials Share Price Jumps Over 5% After Subsidiary Gets ₹609.50 Crore Government Incentive Approval

HEG Advanced Materials shares jumped over 5% in early trade on Wednesday, November 11, after its wholly owned subsidiary TACC received approval for a ₹609.50 crore government incentive for its battery-materials plant in Madhya Pradesh.

The stock touched around ₹305 on the NSE during morning trade before giving up some gains. At around 9:32 AM IST, HEG Advanced Materials was trading at ₹299.79, up 3.67%.

The company informed the stock exchanges on November 6 that TACC had received the approval under the Electronics Component Manufacturing Scheme (ECMS) of the Ministry of Electronics and Information Technology (MeitY).

The incentive is for TACC's synthetic graphite anode material plant at the Sirsoda Industrial Area in Dewas, Madhya Pradesh. The company plans to manufacture materials used in lithium-ion batteries for electric vehicles and energy storage systems.

The plant is being developed on more than 100 acres of land. Its first phase will have an annual capacity of 20,000 metric tonnes and is expected to be commissioned by June 2027. TACC plans to increase capacity to more than 30,000 metric tonnes a year by FY2028-29.

The ₹609.50 crore incentive is subject to government scheme guidelines and prescribed conditions. The company has not specified when the amount will be disbursed.

Why Is HEG Advanced Materials Share Price Rising Today?

HEG Advanced Materials shares gained after the government approved financial support for TACC's proposed battery-materials plant.

The company, earlier known as HEG Limited, is part of the LNJ Bhilwara Group and manufactures graphite electrodes used in steel production. Through TACC, it is entering the battery-materials business.

Synthetic graphite anode material is used in lithium-ion battery cells. The Dewas plant is being set up to supply this material to battery manufacturers in India and overseas.

HEG Advanced Materials has already committed funds to the business. During FY2025-26, the company invested ₹400 crore in TACC through optionally convertible debentures.

The company reported consolidated revenue from operations of ₹2,568.50 crore in FY2025-26. TACC, however, was still developing its project and had not recorded any turnover during the year.

The incentive approval comes as HEG works on expanding its business beyond graphite electrodes. The Dewas project is expected to give the company a presence in battery materials once commercial production begins.

When Will TACC's Dewas Plant Begin Production?

TACC has set June 2027 as the target for commissioning the first phase of its Dewas plant. The initial capacity will be 20,000 metric tonnes per annum, followed by an increase to more than 30,000 metric tonnes by FY2028-29.

The company plans to manufacture synthetic graphite anode material for lithium-ion battery manufacturers. It is also working on other carbon-based materials, including graphene.

The government incentive applies to the Dewas anode-material project and does not cover the company's other planned products.

The approval is not a customer order, and the company has not announced any revenue from the proposed plant. Production is scheduled to begin next year, subject to the project being completed on time.

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