Noida-based graphite electrode manufacturer HEG Ltd on Wednesday (August 19) announced it has received approval from the National Company Law Tribunal (NCLT), Indore Bench, for its Composite Scheme of Arrangement with HEG Graphite Ltd and Bhilwara Energy Ltd. According to reports from CNBC TV18 and ET Now, the NCLT order was uploaded on its website on August 18, 2026, marking a significant milestone in the company's restructuring journey. The scheme will become effective once the certified copy of the order is received and filed with the Registrar of Companies (RoC).
Under the restructuring, HEG shareholders will receive one HEG Graphite share for every one HEG share held, as reported by CNBC TV18 and ET Now. The demerger will result in two independently listed companies, with one entity housing the graphite electrode business while the other focuses on advanced materials, battery energy solutions and renewable energy. The restructuring is designed to create two independent entities with distinct strategic mandates, focused leadership and separate capital structures. Shareholders are set to receive shares in the new entity in a 1:1 ratio, giving investors direct and differentiated exposure to HEG's established graphite electrode franchise and a fast-scaling growth platform in advanced materials, battery energy and renewable power.
The NCLT approval follows earlier approvals from the boards and shareholders of both companies, as well as no-objection letters from the BSE and National Stock Exchange of India (NSE), according to CNBC TV18. The scheme had also received approval from the equity shareholders and secured and unsecured creditors of HEG Ltd and Bhilwara Energy Ltd. EY acted as the structuring and tax advisor, while Khaitan & Co acted as the legal advisor for the scheme. As per HEG, the restructuring aims to create two focused, independently valued businesses, each with its own strategy, capital allocation and growth path.
Riju Jhunjhunwala, Vice Chairman, expressed satisfaction with the NCLT approval, stating it gives immense pleasure to share that they have received approval for demerging HEG Ltd into two companies. As reported by CNBC TV18, Jhunjhunwala emphasized that the scheme will create two focused, independently valued businesses, each with clear strategy, disciplined capital allocation and flexibility to pursue its own growth path. He believes this sharper focus will enable each business to unlock its full potential while creating sustainable, long-term value for shareholders. The restructuring is positioned as a transformational move designed to unlock long-term shareholder value by creating two focused, independently valued businesses with distinct strategic mandates and capital structures.
Shares of HEG Ltd ended at ₹232.60, down by ₹31.65, or 4.28%, on the BSE following the announcement, according to CNBC TV18. However, the company shares have continued to maintain a strong winning run, which began in May 2023, and has gained 284% so far, reaching ₹708 apiece. Earlier this month, the stock scaled its highest level since January 2019, bringing it closer to its all-time high of ₹991. In terms of annual performance, the stock has delivered positive returns in each of the last three years, benefiting retail shareholders who held a 26% stake in the company as of the June-ended quarter, as per the Trendlyne data.
