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HEGs Record-Date Demerger Triggers 63% Share Price Drop as Company Splits into Two Listed Entities
On September 7, 2026, the BSE witnessed a dramatic 63‑percent plunge in HEG Ltd’s shares, dropping to ₹266.65 from an opening of ₹265. The sharp fall was not a sign of distress but a mechanical readjustment triggered by the company’s Composite Scheme of Arrangement, which splits HEG into two independently listed entities.
The stock opened at ₹265, a price that reflects the valuation of the existing company after the demerger adjustment. The previous Friday close stood at ₹729.05. A 5‑percent rise pushed the share to ₹278.20 before the price settled near the opening level, trading flat at ₹266.65 by 12:50 PM. The decline is simply the effect of the demerger math, not a fundamental erosion of value.
Under the scheme, HEG Ltd will be renamed HEG Advanced Materials Limited, preserving its advanced‑materials, battery‑energy‑solutions and green‑power businesses. The graphite‑electrode arm will spin off into a new entity, HEG Graphite Limited, which is slated to be renamed HEG Limited and become a pure‑play graphite‑electrode company. The demerger took effect on September 1, 2026, with the record date for shareholder entitlement set for September 7.
Existing shareholders will receive one fully paid‑up equity share of face value ₹2 in HEG Graphite Limited for every fully paid‑up equity share of face value ₹2 held in HEG Advanced Materials Limited, matching the 1:1 ratio approved by the board. The shares of the demerged company are scheduled to list on the BSE and NSE in 45 days, in the second half of October 2026.
The plan also includes an amalgamation of Bhilwara Energy Limited, a flagship power‑sector entity of the LNJ Bhilwara Group. Bhilwara Energy will be dissolved without winding up, and its assets will merge into HEG Advanced Materials Limited. Under the amalgamation, HEG Advanced Materials Limited will issue eight equity shares of face value ₹2 to existing Bhilwara Energy shareholders for every seven equity shares of face value ₹10 held in Bhilwara Energy.
The company said the reorganisation gives each business an independent listing, focused management and the flexibility to pursue its own growth path. The split is intended to allow the advanced‑materials and battery‑energy‑solutions businesses to operate without the operational and financial weight of the graphite‑electrode segment.
HEG’s core businesses span advanced materials, battery‑energy solutions, green power and graphite electrodes. The advanced‑materials arm supplies high‑performance materials for electronics and automotive applications, while the battery‑energy‑solutions unit focuses on battery manufacturing and related services. The graphite‑electrode business supplies electrodes for electric‑vehicle batteries and other industrial uses.
Market observers note that the share price drop is largely a mechanical adjustment. The demerger‑adjusted price of the existing company is around ₹260, and the share price trading at ₹266.65 is only marginally above that level. The 63‑percent decline reflects the split of the company’s assets and the new valuation of the remaining business.
As of today, the demerger is fully approved by the board and the effective date has passed. The next key milestones are the listing of HEG Graphite Limited in October, the issuance of shares to Bhilwara Energy shareholders, and the finalization of the amalgamation process. Shareholders will need to monitor the upcoming filings for any changes to the share‑issuance ratios or listing dates.
The demerger is a significant corporate restructuring that will create two independent, publicly listed entities. The advanced‑materials and battery‑energy‑solutions businesses will continue under HEG Advanced Materials Limited, while the graphite‑electrode business will operate as HEG Limited. The split is expected to provide clearer valuation and focused management for each segment, but investors should watch for the final listing dates and any regulatory approvals that may affect the timeline.
The stock opened at ₹265, a price that reflects the valuation of the existing company after the demerger adjustment. The previous Friday close stood at ₹729.05. A 5‑percent rise pushed the share to ₹278.20 before the price settled near the opening level, trading flat at ₹266.65 by 12:50 PM. The decline is simply the effect of the demerger math, not a fundamental erosion of value.
Under the scheme, HEG Ltd will be renamed HEG Advanced Materials Limited, preserving its advanced‑materials, battery‑energy‑solutions and green‑power businesses. The graphite‑electrode arm will spin off into a new entity, HEG Graphite Limited, which is slated to be renamed HEG Limited and become a pure‑play graphite‑electrode company. The demerger took effect on September 1, 2026, with the record date for shareholder entitlement set for September 7.
Existing shareholders will receive one fully paid‑up equity share of face value ₹2 in HEG Graphite Limited for every fully paid‑up equity share of face value ₹2 held in HEG Advanced Materials Limited, matching the 1:1 ratio approved by the board. The shares of the demerged company are scheduled to list on the BSE and NSE in 45 days, in the second half of October 2026.
The plan also includes an amalgamation of Bhilwara Energy Limited, a flagship power‑sector entity of the LNJ Bhilwara Group. Bhilwara Energy will be dissolved without winding up, and its assets will merge into HEG Advanced Materials Limited. Under the amalgamation, HEG Advanced Materials Limited will issue eight equity shares of face value ₹2 to existing Bhilwara Energy shareholders for every seven equity shares of face value ₹10 held in Bhilwara Energy.
The company said the reorganisation gives each business an independent listing, focused management and the flexibility to pursue its own growth path. The split is intended to allow the advanced‑materials and battery‑energy‑solutions businesses to operate without the operational and financial weight of the graphite‑electrode segment.
HEG’s core businesses span advanced materials, battery‑energy solutions, green power and graphite electrodes. The advanced‑materials arm supplies high‑performance materials for electronics and automotive applications, while the battery‑energy‑solutions unit focuses on battery manufacturing and related services. The graphite‑electrode business supplies electrodes for electric‑vehicle batteries and other industrial uses.
Market observers note that the share price drop is largely a mechanical adjustment. The demerger‑adjusted price of the existing company is around ₹260, and the share price trading at ₹266.65 is only marginally above that level. The 63‑percent decline reflects the split of the company’s assets and the new valuation of the remaining business.
As of today, the demerger is fully approved by the board and the effective date has passed. The next key milestones are the listing of HEG Graphite Limited in October, the issuance of shares to Bhilwara Energy shareholders, and the finalization of the amalgamation process. Shareholders will need to monitor the upcoming filings for any changes to the share‑issuance ratios or listing dates.
The demerger is a significant corporate restructuring that will create two independent, publicly listed entities. The advanced‑materials and battery‑energy‑solutions businesses will continue under HEG Advanced Materials Limited, while the graphite‑electrode business will operate as HEG Limited. The split is expected to provide clearer valuation and focused management for each segment, but investors should watch for the final listing dates and any regulatory approvals that may affect the timeline.
