HEG demerger to take effect on September 1; record date fixed for September 7

HEG Ltd will implement its demerger from September 1, creating two separately listed companies focused on graphite electrodes and advanced materials. The company has fixed September 7 as the record date to determine shareholder entitlement under the composite scheme of arrangement, according to an exchange filing on Tuesday.

Under the demerger, shareholders of HEG as on the record date will receive one fully paid-up equity share of face value Rs 2 in the resulting company for every one equity share of face value Rs 2 held in HEG. This means shareholders will get shares in the new company in a 1:1 ratio.

The company said the demerger will lead to the creation of two independent listed entities. 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. It is proposed to be renamed HEG Advanced Materials Ltd. The name changes are subject to approval from the Registrar of Companies and other statutory authorities.

As part of the same scheme, Bhilwara Energy Ltd will be amalgamated into HEG. HEG will issue eight equity shares of face value Rs 2 for every seven equity shares of face value Rs 10 held in Bhilwara Energy.

The company also announced leadership changes that will take effect from September 1. Ravi Jhunjhunwala will continue to lead HEG Graphite Ltd as Chairman, Managing Director and Chief Executive Officer. He will also remain on the board of HEG Advanced Materials in a non-executive capacity.

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.

The company said the leadership and board changes are linked to the new two-company structure and are not connected to the performance or operations of either business. Directors and key personnel associated with the graphite business will move with that business to the resulting company, while the board of the advanced materials company is being reconstituted for the new structure.

Ravi Jhunjhunwala said Riju Jhunjhunwala brings the vision and discipline to lead a platform that builds on the group’s carbon expertise and expands into advanced materials, battery energy solutions and renewable energy.

Riju Jhunjhunwala said HEG Advanced Materials will focus on building advanced materials capabilities from India for global markets. He said the company’s immediate focus will include scaling synthetic graphite anode material, where it is developing commercial-scale manufacturing capability, while also advancing graphene and related applications.

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, subject to shareholder approval.

The new independent directors are Manish Sharma, Sanjeev Mehra, Ameya Suresh Prabhu, Rajiv Dewan and Pushp Jain. Sharma earlier served as Chairman and Enterprise Growth Officer of Panasonic Life Solutions India and South Asia. Mehra is a power-sector veteran and previously served as Managing Director of Tata Power Trading Company.

HEG is part of the LNJ Bhilwara Group and is one of the world’s leading manufacturers of graphite electrodes used mainly in electric arc furnace steelmaking. It also operates a hydropower facility at Tawa Nagar in Madhya Pradesh and has interests in advanced battery materials, battery energy storage solutions and green power generation through subsidiaries and associates.

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