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HEG has informed the exchanges that the NCLT Indore Bench has sanctioned the company's composite scheme of arrangement

ICICIdirect Research 19 Aug 2026 DISCLAIMER

News: HEG has informed the exchanges that the NCLT Indore Bench has sanctioned the company's composite scheme of arrangement involving demerger of its graphite electrode business into HEG Graphite Ltd and amalgamation of Bhilwara Energy Ltd into HEG. Under the scheme, shareholders will receive 1 share of the resulting HEG Graphite Ltd for every 1 HEG share held as on the record date (yet to be notified)

View: The demerger creates value-unlocking opportunity by allowing the graphite and green-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 (>30%) growth opportunity. 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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