HEG demerger: What 1:1 restructuring mean for shareholders as company fixes record date?
On September 7, HEG will finalise its demerger, providing shareholders one share in the new entity for each existing share they hold. The graphite electrodes segment will transition to HEG Graphite, retaining the HEG name. Additionally, Bhilwara Energy will merge into HEG at a designated share issuance ratio, with leadership shifts commencing on September 1.
HEG has set September 7 as the record date for its demerger into two separate companies: one focused on graphite electrodes and another on advanced materials. The existing HEG will become HEG Advanced Materials, while HEG Graphite will handle the graphite electrodes business. Shareholders will receive one share of the new company for every share they hold in HEG as of the record date, following a 1:1 demerger ratio.
For instance, an investor with 10 HEG shares on the record date will own 10 shares of both HEG and HEG Advanced Materials after the demerger. Only shareholders holding HEG in their demat accounts on the record date will be eligible for the new shares. Bhilwara Energy, an unlisted company, will be merged into HEG, with HEG issuing eight new shares for every seven shares held in Bhilwara Energy.
Ravi Jhunjhunwala will remain as Chairman and Managing Director of HEG Graphite and also serve as a non-executive director of HEG Advanced Materials. Riju Jhunjhunwala will take the helm of HEG Advanced Materials as its Chairman and Managing Director for a five-year term. HEG's shares have shown strong performance, with a 52-week high of Rs 749, a 15% gain in 2026, and substantial gains over longer periods, reaching a market capitalisation of nearly Rs 13,895 crore.
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