The demerger will result in two independently listed companies, with HEG shareholders set to receive one HEG Graphite share for every one HEG share held.
The NCLT order was uploaded on its website on August 18, 2026. The scheme will become effective once the certified copy of the order is received and filed with the Registrar of Companies (RoC).
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Under the restructuring, one entity will house the graphite electrode business, while the other will focus on advanced materials, battery energy solutions and renewable energy.
HEG said the restructuring is designed to create two independent entities with distinct strategic mandates, focused leadership and separate capital structures.
The company said the demerger is intended to provide shareholders with direct exposure to the graphite electrode business and the growth platform focused on advanced materials, battery energy solutions and renewable energy.
Shareholders of HEG Ltd will receive one equity share of HEG Graphite Ltd for every one share held in HEG Ltd.
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The NCLT approval follows earlier approvals from the boards and shareholders of the companies, as well as no-objection letters from the BSE and National Stock Exchange of India (NSE). The scheme had also received approval from the equity shareholders and secured and unsecured creditors of HEG Ltd and Bhilwara Energy Ltd.
HEG said the demerger is expected to create two focused, independently valued businesses, each with its own strategy, capital allocation and growth path. EY acted as the structuring and tax advisor, while Khaitan & Co acted as the legal advisor for the scheme.
Riju Jhunjhunwala, Vice Chairman, said, “It gives me immense pleasure to share that we have got NCLT’s approval for demerging HEG Ltd. into two companies – one that houses the single largest plant of its kind in the world and is purely focused on graphite electrodes and the other which focuses on advanced materials with a solid backing of green power and CNI-based solutions.
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The approval marks an important milestone in our value creation journey. The Scheme will create two focused, independently valued businesses, each with a clear strategy, disciplined capital allocation and the flexibility to pursue its own growth path. We believe this sharper focus will enable each business to unlock its full potential while creating sustainable, long-term value for our shareholders.”
Shares of HEG Ltd ended at ₹232.60, down by ₹31.65, or 4.28%, on the BSE.
