HEG trades ex-Graphite business, gains 3% on debut
The stock closed at ₹273 on the NSE, valuing the company (ex-graphite) at ₹5,300 crore
Shares of HEG, formerly known as Graphite, began trading without the graphite segment on the Bombay Stock Exchange (BSE) on September 2, 2022. The stock opened at ₹265 and rose to ₹274, reflecting a 3% gain on debut trading. The company's market cap, excluding the graphite business, is now estimated at ₹5,300 crore. HEG has rebranded itself as HEG Advanced Materials since September 2.
Shareholders who hold HEG shares on September 7 are set to receive one share of the graphite company for every share they own, with a face value of ₹2. The graphite unit, HEG Graphite, is slated for listing on exchanges in the second half of October. Emkay Global Financial Services has assigned an equity value of roughly ₹9,700 crore, or ₹500 per share, to the graphite business, using a 12x multiple of the projected EV/EBITDA for 2027.
The advanced-materials entity, comprising Bhilwara Energy and the battery-materials unit TACC, is valued at about ₹8,360 crore, or ₹250 per share, using an EV/EBITDA multiple of 9x for Bhilwara Energy and a 20x FY28 P/E multiple for TACC. Ravi Jhunjhunwala will serve as Chairman, Managing Director, and Chief Executive Officer of HEG Graphite, beginning September 1, and will remain on the board of HEG Advanced Materials in a non-executive role.
Riju Jhunjhunwala is appointed as the Chairman, Managing Director, and Chief Executive Officer of HEG Advanced Materials, serving a five-year term with shareholder approval, and will also hold a non-executive position on the board of HEG Graphite.
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