HEG Demerger Effective Sep 1, Record Date Sep 7; Leadership Changes Announced
HEG Limited's demerger is effective September 1, 2026, with a record date of September 7, 2026. Shareholders receive a 1:1 share entitlement in the new graphite electrodes entity. Ravi Jhunjhunwala will lead HEG Graphite, while Riju Jhunjhunwala will lead HEG Advanced Materials. Five independent directors appointed to HEG Advanced Materials.
A demerger is a significant corporate action that fundamentally restructures the company, creating new entities and impacting shareholder value. The leadership changes and strategic realignment for two distinct businesses have a high impact.
The demerger is expected to create two strong, independent listed entities, which is generally viewed positively by the market. The clear leadership appointments and strategic focus for each new company also contribute to a positive outlook.
HEG Limited has finalized the steps for its Composite Scheme of Arrangement, which will establish two independent listed entities. The Board has designated September 1, 2026, as the Effective Date and September 7, 2026, as the Record Date for shareholders.
Under the scheme, shareholders will receive one equity share of ₹2 face value in the resulting company for every equity share of ₹2 held in HEG (1:1 ratio). Additionally, Bhilwara Energy Limited will be amalgamated into HEG, with HEG issuing eight equity shares of ₹2 face value for every seven equity shares of ₹10 held in Bhilwara Energy Limited.
Post-demerger, HEG Graphite Limited (proposed to be renamed HEG Limited) will house the graphite electrodes business. The existing listed entity will focus on advanced materials, battery energy solutions, and green power, and is proposed to be renamed HEG Advanced Materials Limited. Both name changes are subject to regulatory approvals.
Leadership appointments are effective from September 1, 2026. Mr. Ravi Jhunjhunwala will lead HEG Graphite Limited as Chairman, MD & CEO, and will remain on the board of HEG Advanced Materials Ltd. in a non-executive capacity. Mr. Riju Jhunjhunwala is elevated to Chairman, MD & CEO of HEG Advanced Materials Ltd. for a five-year term, subject to shareholder approval.
The Board of HEG Advanced Materials Limited will also be strengthened with the appointment of five Additional Directors in the category of Non-Executive Independent Directors for a five-year term from September 1, 2026, to August 31, 2031, subject to shareholder approval. These appointees include Mr. Manish Sharma, Mr. Sanjeev Mehra, Mr. Ameya Suresh Prabhu, Mr. Rajiv Dewan, and Mr. Pushp Jain.
A plain-language summary of a public exchange filing by HEG Limited. Read the original for the full detail.