HEG Demerger: Company Sets September 7 Record Date For Separation Of Graphite Electrode Business
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HEG sets September 7 record date for demerger that will separate its graphite electrode business into a new listed entity.
HEG Ltd has fixed September 7, 2026 as the record date for its proposed demerger, under which the company's graphite electrode business will be separated from its advanced materials and other businesses.
The board has approved September 1 as the effective date of the composite scheme of arrangement and September 7 as the record date for determining shareholders eligible to receive shares in the resulting company.
Under the scheme, HEG's graphite electrode business will be transferred to HEG Graphite Limited. The resulting company is proposed to be renamed HEG Limited and separately listed as a pure-play graphite electrode business.
The existing listed entity will retain the advanced materials, battery energy solutions and green power businesses and is proposed to be renamed HEG Advanced Materials Limited.
The proposed name changes will be subject to approvals from the Registrar of Companies and other statutory authorities, HEG said.
HEG demerger: What shareholders will get
Shareholders holding HEG shares on the September 7 record date will receive one fully paid-up equity share of face value ₹2 in the resulting company for every one equity share of face value ₹2 held in HEG.
The scheme also provides for the amalgamation of Bhilwara Energy Limited with HEG.
As part of the amalgamation, HEG will issue eight equity shares of face value ₹2 each for every seven equity shares of face value ₹10 each held by shareholders of Bhilwara Energy.
HEG demerger: Management changes
The restructuring will also lead to separate management teams for the two businesses.
Ravi Jhunjhunwala will take over as chairman, managing director and chief executive officer of HEG Graphite Limited from September 1, 2026. He will continue to serve on the board of HEG Advanced Materials.
Riju Jhunjhunwala has been elevated to chairman, managing director and chief executive officer of HEG Advanced Materials for a five-year term, subject to shareholder approval.
The demerger is aimed at creating separate listed businesses focused on graphite electrodes and advanced materials, allowing the two entities to operate as distinct businesses.
HEG share price
Shares of HEG were trading at ₹712.25 apiece, down ₹9.30 or 1.29%, at 12:49 pm on August 26. The stock had earlier fallen 2.55% to ₹702.25 during the session.
The market reaction came as the company announced the effective and record dates for the demerger.
Also Read - Market Midday, 26 August 2026: Sensex, Nifty 50 Trade Mixed
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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