HEG demerger: What 1:1 restructuring means for shareholders as company fixes record date?

HEG has fixed September 7 as the record date to determine which shareholders will be eligible for its demerger to create two separately listed companies focused on graphite electrodes and advanced materials.

The graphite electrodes business will move to HEG Graphite, which is proposed to be later renamed to HEG and run as a pure-play graphite electrodes company. The existing listed company will retain the advanced materials, battery energy solutions and green power businesses. It is proposed to be renamed HEG Advanced Materials after the demerger.

What does this mean for HEG shareholders?

As part of the demerger, HEG shareholders will receive one share with a face value of Rs 2 each in the company being spun off for every share they hold in the existing HEG. This means the demerger ratio has been fixed at 1:1.


For example, an investor who holds 10 shares of HEG as on the record date will, after the demerger takes effect, hold 10 shares of HEG and 10 shares of HEG Advanced Materials. The value of the existing HEG shares will adjust to reflect the demerger, resulting in a lower share price.

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.

As part of the same scheme, Bhilwara Energy will be amalgamated into HEG. Under the arrangement, HEG will issue eight equity shares with a face value of Rs 2 each for every seven equity shares with a face value of Rs 10 each held in Bhilwara Energy. It is important to note that Bhilwara Energy is an unlisted company.

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

Leadership changes at HEG

Along with announcing the record date for the demerger, HEG also announced leadership changes that will take effect from September 1. Ravi Jhunjhunwala will continue to lead HEG Graphite 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 to the position of Chairman, Managing Director and Chief Executive Officer of HEG Advanced Materials for a five-year term, subject to shareholder approval.

“Our immediate focus includes scaling synthetic graphite anode material, where we are developing commercial-scale manufacturing capability, while continuing to advance graphene and its applications across industries. At the same time, we will continue to invest in research and build the capabilities required to take promising materials from scientific possibility towards industrial scale. Our ambition is to build HEG Advanced Materials into a globally competitive advanced materials company, one known for the depth of its science, the quality of its execution and the responsibility with which it builds for the long term,” said Riju Jhunjhunwala.

HEG share price

HEG shares have gained 2% in the past week and 12% in a month, with the stock hitting a 52-week high of Rs 749 apiece earlier this month. Overall, the shares have gained more than 15% in 2026 so far.

Over the longer term, HEG shares have jumped around 51% in one year, soared 109% in three years and risen 63% in five years. The company has a market capitalisation of nearly Rs 13,895 crore.

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