HEG Advanced Materials Limited issued guidance to shareholders regarding the apportionment of the cost of acquisition of equity shares following the demerger of its graphite business. The company advised that pre-demerger costs must be split between the parent entity and HEG Graphite Limited based on specific percentages.

Demerger structure and share allotment

The National Company Law Tribunal, Indore Bench, sanctioned the Composite Scheme of Arrangement on August 13, 2026. The scheme facilitated the demerger of the graphite undertaking from HEG Advanced Materials (formerly HEG Limited) into HEG Graphite Limited. It also included the amalgamation of Bhilwara Energy Limited into HEG Advanced Materials.

In relation to the demerger, shares were allotted on September 11, 2026. The ratio was one fully paid-up equity share of ₹2 each in HEG Graphite Limited for every one equity share of ₹2 each held in HEG Advanced Materials as on the record date of September 7, 2026.

Cost of acquisition apportionment

For tax purposes, the demerger is considered tax neutral under Section 70(k) of the Income-tax Act, 2025. Consequently, the cost of acquisition of shares in both entities must be adjusted. The company provided a clear breakdown for shareholders holding these shares as capital assets.

The cost of acquisition for HEG Graphite shares is determined by the proportion of the net book value of assets transferred relative to the net worth of the demerged company immediately before the transaction. The remaining cost is attributed to HEG Advanced Materials.

Tax implications and shareholder guidance

The date of acquisition for the new HEG Graphite shares will be deemed to be the same as the date of acquisition of the original HEG Advanced Materials shares. This continuity ensures that the holding period for capital gains tax purposes remains unaffected by the corporate restructuring.

HEG Advanced Materials emphasized that this communication serves solely as general guidance. The company noted that determining cost of acquisition involves complex applications of Sections 90(7) and 198 of the Income-tax Act, 2025. Shareholders are advised to seek independent professional advice, as regulatory or judicial authorities may interpret these provisions differently.

HEG Advanced Materials Limited will hold a one-to-one physical meeting with an institutional investor or analyst on September 28, 2026, at 12:30 pm. The session is scheduled to take place at the company’s discretion, with senior management participating in the discussion.

Meeting Details

The interaction is structured as a direct engagement between the company’s leadership and a single investor representative. The meeting will be conducted in person rather than via video conference or telephone.

Regulatory Compliance

The disclosure is made pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This framework mandates timely communication of scheduled interactions with market participants to ensure equitable information distribution.

Information Protocol

The company explicitly stated that no unpublished price-sensitive information (UPSI) will be shared during the session. This standard compliance measure ensures that all market participants receive material information simultaneously through official channels.

The schedule remains subject to change due to exigencies on the part of the investor or the company. Any modifications to the timing or mode of interaction would be communicated through subsequent regulatory filings.