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HEG has approved 1st Sept'26 as the effective date for its Composite Scheme of Arrangement

ICICIdirect Research 25 Aug 2026 DISCLAIMER

News: HEG has approved 1st Sept'26 as the effective date for its Composite Scheme of Arrangement involving the demerger of its graphite business into HEG Graphite and the amalgamation of Bhilwara Energy with HEG (housing graphite anode and renewable energy projects). The record date is 7th Sept'26, with shareholders entitled to 1 share of HEG Graphite for every 1 HEG share held. 

View: The restructuring will create a significant value-unlocking opportunities by allowing the graphite and gree-tech businesses to pursue independent growth strategies. It's graphite anode business under TACC segment is encouraging, with the company setting up a 20,000 TPA greenfield battery-grade anode plant, which could provide a meaningful high-margin growth opportunity, given the >30% margin potential. Further, the new company has opportunities across advanced battery materials, battery energy solutions, hydro power and renewable energy, providing multiple avenues for long-term growth and diversification. On the HEG Graphite side, indication of rise in graphite electrode prices bodes well for its base business. With stock approaching fair value, we have a positive view on the company.

Impact: Positive

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