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HEG gets NCLT nod to demerge, to create two independently listed firms
HEG shareholders will receive a 1:1 allotment of HEG Graphite shares for each HEG share held, as the restructuring follows approvals from boards, shareholders, creditors, and India’s stock exchanges.
HEG said it received approval from India’s National Company Law Tribunal (NCLT) for its demerger plan, clearing the way to form two independently listed companies. The NCLT approved the Composite Scheme of Arrangement among HEG, HEG Graphite, and Bhilwara Energy.
Under the scheme, HEG shareholders are set to receive one HEG Graphite share for every HEG share held. The company said the demerger plan also had prior approvals from the boards and shareholders of the companies, along with no-objection letters from the BSE and NSE, and support from equity shareholders as well as secured and unsecured creditors of both HEG Limited and Bhilwara Energy Limited.
HEG said the restructuring is intended to unlock long-term value by giving investors more direct and differentiated exposure to a mature, cash-generative graphite electrode business and a faster-scaling growth platform. HEG Graphite will focus on graphite electrodes, while HEG will focus on advanced materials, battery energy solutions, and renewable energy, backed by green power and CNI-based solutions.
The company said it aims to build an integrated platform across advanced battery materials, renewable power, storage, and hydro energy for India’s energy transition. HEG shares, which have been on a strong run since May 2023, have gained 284% to about ₹708 apiece, according to the report, and the stock scaled its highest level since January 2019 this month.