- HEG Ltd received NCLT approval for its Composite Scheme of Arrangement with two entities
- The demerger will create two independent, publicly listed companies from HEG Ltd
- Shareholders will get one HEG Graphite Ltd share for each HEG Ltd share held
Noida-based graphite electrode manufacturer HEG Ltd has received approval from the National Company Law Tribunal (NCLT), Indore Bench, for its Composite Scheme of Arrangement with HEG Graphite Ltd and Bhilwara Energy Ltd.
The demerger will result in two independently listed companies. Under the scheme, shareholders of HEG Ltd will receive one share of HEG Graphite Ltd for every one HEG share held.
The NCLT order was uploaded on its website on August 18, 2026. The scheme will become effective after the certified copy of the order is received and filed with the Registrar of Companies (RoC).
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 aimed at creating two independent entities with separate strategic mandates, focused leadership and distinct capital structures. The company said the demerger will give shareholders direct exposure to the graphite electrode business as well as the growth platform focused on advanced materials, battery energy solutions and renewable energy.
The NCLT approval follows earlier clearances from the boards and shareholders of the companies, along with no-objection letters from the BSE and the National Stock Exchange of India (NSE). The scheme had also received approval from 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 was the legal advisor for the scheme.
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Shares of HEG Ltd ended at Rs 232.60 on the BSE on Wednesday, down Rs 31.65, or 4.28%.
According to MSN 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.”
He said the approval marks an important milestone in the company's value creation journey.
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