HEG Ltd has successfully completed the final operative steps of its Composite Scheme of Arrangement, with the demerger becoming effective from September 1, 2026. The company has fixed September 7, 2026 as the record date to determine shareholder entitlement under the scheme, according to the latest announcement. Under the demerger, shareholders of HEG as on the 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, meaning shareholders will get shares in the new company in a 1:1 ratio. The Board approved the effective date following the receipt of the certified copy of the NCLT order on August 21, 2026, after the tribunal sanctioned the scheme on August 13, 2026.
The graphite electrodes business will move to HEG Graphite Ltd, which is proposed to be renamed HEG Ltd and run as a pure-play graphite electrodes company. The existing listed company, currently trading under BSE scrip code 509631 and NSE symbol HEG, will retain the advanced materials, battery energy solutions and green power businesses and is proposed to be renamed HEG Advanced Materials Ltd. As part of the scheme, Bhilwara Energy Limited will be amalgamated into HEG, with HEG issuing eight equity shares of face value ₹2 for every seven equity shares of face value ₹10 held in Bhilwara Energy Limited. The name changes are subject to approval from the Registrar of Companies and other statutory authorities.
As part of the scheme, Ravi Jhunjhunwala will relinquish his role as CMD and CEO of HEG Limited to become the CMD and CEO of HEG Graphite Limited, continuing as a Non-Executive Non-Independent Director at HEG Limited. Riju Jhunjhunwala, currently Vice-Chairman, has been elevated as Chairman, Managing Director and CEO of HEG Advanced Materials for a five-year term effective September 1, 2026, succeeding Ravi Jhunjhunwala. The company also appointed five additional independent directors to the board of HEG Advanced Materials for a first term of five years from September 1, 2026, to August 31, 2031. Several independent directors, including Jayant Davar, Priya Shankar Dasgupta, Nand Gopal Khaitan, and Sandip Somany, have resigned from the HEG Limited board solely to facilitate reconstitution post-scheme.
For existing shareholders, the demerger will result in two separate shareholdings - one in HEG Graphite and one in HEG Advanced Materials. An investor holding 10 shares of HEG as on the record date will receive 10 shares of HEG Graphite and 10 shares of HEG Advanced Materials after the demerger takes effect. 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 value of existing HEG shares will adjust to reflect the demerger, resulting in a lower share price. HEG shares were trading 2.55% lower at ₹702.25 on the BSE at 11:55 AM, reflecting market reaction to the demerger announcement. The shares are expected to remain in focus as the demerger implementation approaches.
