HEG shares gained 3% to ₹274 on BSE on their debut trading day after adjusting for the demerger, which split the company's businesses into two separately listed entities. The stock closed at ₹273 on NSE, valuing the company at ₹5,300 crore post-demerger. As per The Hindu BusinessLine, the shares opened at ₹265 as the stock adjusted for the demerger, which separates HEG's legacy graphite electrodes manufacturing from its newer materials and energy businesses. The rebrand marks the near-final step in a composite scheme of arrangement cleared by the National Company Law Tribunal's Indore bench on August 13, 2026, with the graphite electrodes business moving to HEG Graphite, which is proposed to be later renamed to HEG and run as a pure-play graphite electrodes company.
HEG shares opened at ₹265 on BSE today as the stock adjusted for the demerger, which split its businesses into two separately listed entities. The stock went on to climb 5% to touch the upper circuit at ₹278.20 before paring gains to trade flat at ₹266.65 around 12:50 PM. After closing at ₹729.05 apiece on Friday, HEG shares opened around 63% lower as it adjusted to the demerger on the record date. However, investors should not mistake the sharp fall displayed on their screens for an actual destruction of value. As reported by Live Mint, the stock has actually jumped 5% from its true adjusted value to its day's high of ₹273 against the exchange's newly adjusted base price of around ₹260. The appropriate comparison is with the demerger-adjusted price of around ₹260, implying an actual decline of only about 0.8%. The apparent plunge reflects the removal of the value of the graphite electrode business from the price of the existing listed company, with Friday's ₹729.05 closing price representing HEG before the demerger adjustment.
The record date for determining shareholders eligible for shares in the demerged graphite business was today, September 7, 2026. As reported by Live Mint, HEG share price closed 0.38% lower at ₹725.50 apiece on NSE on Friday, with the company's market capitalisation standing at ₹11,579 crore as of September 4. Following the record date, the share price of HEG Advanced Materials Limited will be adjusted to reflect the value of the demerged graphite electrode business, with the stock trading on an ex-demerger basis from September 7. The listing of the graphite entity is expected to take place within the next 45 days, with the graphite company's shares expected to list separately in the second half of October. According to The Economic Times, only shareholders who hold HEG shares in their demat accounts as on the record date will be eligible to receive shares in the new company as part of the demerger. The current price reflects the valuation of the already listed company, which will retain the advanced materials, battery energy solutions and green power businesses, with the company's name now changed to HEG Advanced Materials Limited according to an exchange filing.
Emkay Global Financial Services has assigned the graphite business an equity value of about ₹9,700 crore, or ₹500 per share, based on a 12 times multiple of the estimated June 2027 EV/EBITDA. The advanced-materials entity, which houses Bhilwara Energy and the battery-materials unit TACC (The Advanced Carbons Company), has been valued at about ₹8,360 crore, or ₹250 per share, using a 9 times EV/EBITDA multiple for Bhilwara Energy and a 20x FY28 P/E multiple for TACC. The demerger follows a 1:1 ratio, meaning shareholders holding shares of HEG Advanced Materials Limited as of the record date will receive one fully paid-up equity share of face value ₹2 each in HEG Graphite Limited for every one fully paid-up ₹2 equity share held in HEG Advanced Materials Limited. As part of the amalgamation arrangement, HEG Advanced Materials Limited will also issue eight equity shares of ₹2 each to existing shareholders of Bhilwara Energy Limited, excluding HEG Advanced Materials Limited, for every seven equity shares of ₹10 each held in Bhilwara Energy.
Riju Jhunjhunwala has been elevated as Chairman, Managing Director and Chief Executive Officer of HEG Advanced Materials for a five-year term, subject to shareholder approval, while Ravi Jhunjhunwala will serve as Chairman, Managing Director and CEO of HEG Graphite Limited with effect from September 1, 2026. According to The Hindu BusinessLine, Riju Jhunjhunwala will continue on the Board of HEG Graphite in a non-executive capacity, while Ravi Jhunjhunwala will also be on the Board of HEG Advanced Materials in a non-executive capacity. Riju Jhunjhunwala outlined the company's focus on scaling synthetic graphite anode material and advancing graphene applications across industries, with ambitions to build HEG Advanced Materials into a globally competitive advanced materials company. He emphasized that the reorganisation will create two focused, independently valued businesses, each with a clear strategy, disciplined capital allocation, and the flexibility to pursue its own growth path, enabling each business to unlock its full potential while creating sustainable, long-term value for shareholders.
