HEG Demerger Record Date Today On 7 September; Graphite Business Set To Become A Standalone Entity
Add Preferred News Source
The HEG Ltd. demerger date is 7 September 2026, which determines shareholder eligibility for shares in the separated graphite electrode business under the 1:1 arrangement.HEG shares opened at around ₹260 on 7 September, compared with Friday’s close of about ₹728. However, the sharp decline is largely due to the demerger-related price adjustment and does not represent a 64% destruction of shareholder value.
The HEG Ltd. demerger takes a significant step forward on 7 September 2026, with the record date determining the shareholders entitled to receive shares in the split graphite electrode company.
Under the scheme, HEG Graphite Ltd. will house the graphite electrode business and is proposed to be renamed HEG Ltd. after its separate listing. The existing listed company, HEG Advanced Materials Ltd., will retain the other businesses.
The stock was trading at around ₹728 apiece on Friday, which translates into a fall of over 64% in the stock price. HEG stock opened around ₹260 on 7 September. However, the fall is mainly due to the demerger, as the exchange is adjusting the stock price to reflect the value of the business that will move to the separate graphite entity.
The base price, after adjusting for exchange rates, worked out to be about ₹260. Based on this new reference price, the intraday high for HEG shares was ₹273. This shows that the apparent 64% drop does not correspond to a loss in the value of the shares held by shareholders.
HEG Demerger Record Date Sets Shareholder Eligibility
The demerger will be implemented on a 1:1 basis. Shareholders holding HEG Advanced Materials Ltd. shares on the record date will receive one fully paid-up equity share of HEG Graphite Ltd. for every one fully paid-up equity share held. Both shares will have a face value of ₹2 each.
The arrangement also includes an amalgamation component involving Bhilwara Energy Ltd. Each eligible shareholder of Bhilwara Energy, other than HEG Advanced Materials Ltd., will receive eight equity shares of ₹2 each of HEG Advanced Materials Ltd. for every seven equity shares of ₹10 each held in Bhilwara Energy.
HEG Ltd. Demerger Will Create Two Focused Businesses
The restructuring is intended to create separate businesses with distinct operating focuses. HEG Graphite Ltd. will emerge as a pure-play graphite electrode company. HEG Advanced Materials Ltd. will continue to operate its advanced materials, battery energy solutions and green power businesses.
Following the HEG demerger record date, the share price of HEG Advanced Materials Ltd. will be adjusted to account for the value attributed to the demerged graphite electrode business. The stock is trading on an ex-demerger basis from 7 September 2026, meaning the value of the separated graphite business has been accounted for in the share price.
Graphite Entity Expected To List In October
HEG Graphite Ltd. is expected to be listed on the stock exchanges in the second half of October 2026. Once listed, the company is proposed to be renamed HEG Ltd.
Ravi Jhunjhunwala has been serving as Chairman, Managing Director and Chief Executive Officer (CEO) of HEG Graphite Ltd. since 1 September 2026. He will continue as a director on the board of HEG Advanced Materials Ltd.
Meanwhile, Riju Jhunjhunwala has been appointed Chairman, Managing Director and CEO of HEG Advanced Materials Ltd. for five years, subject to shareholder approval.
Also Read - Indian IT stocks fall over 1% as Fed rate-hike bets rise; Infosys, Tech Mahindra lead losses
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
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
Right Tools, Rich Insights
