HEG has received final approval from the National Company Law Tribunal for its demerger plan, marking the culmination of regulatory clearances required to split the business into two distinct listed entities.

NCLT sanction and execution timeline

The Hon'ble NCLT, Indore Bench, passed the order sanctioning the Composite Scheme of Arrangement on August 18, 2026, which was subsequently uploaded to the tribunal's website. The company announced the receipt of this approval on August 19, 2026. Under the approved scheme, every shareholder of HEG will be entitled to one equity share in HEG Graphite Limited for every one share held in HEG Limited, maintaining the previously disclosed 1:1 allotment ratio.

The scheme involves HEG Limited, HEG Graphite Limited, and Bhilwara Energy Limited, along with their respective shareholders and creditors. It is structured under Sections 230 to 232 of the Companies Act, 2013. The arrangement becomes effective immediately upon the filing of the certified copy of the order with the Registrar of Companies (RoC). This sanction follows earlier approvals from the boards and shareholders of all involved companies, as well as no-objection letters from both the BSE and NSE.

Strategic rationale and business focus

The restructuring is designed to unlock long-term value by creating two focused businesses with independent capital structures and management attention. HEG Limited will retain its legacy position as a global manufacturer of graphite electrodes, primarily used in electric arc furnace steelmaking. The demerged entity will house the group's growth-oriented initiatives, including advanced battery materials, battery energy storage solutions, renewable energy generation, and hydro power assets.

Ravi Jhunjhunwala, Chairman, MD & CEO, stated that the split leverages the LNJ Bhilwara Group's five-decade expertise in carbon science to create differentiated platforms. He noted that HEG Limited will continue its graphite electrode operations, while the new company will extend into technologies powering the next industrial era, contributing to India's energy transition.

Riju Jhunjhunwala, Vice Chairman, added that the approval marks a key milestone in value creation. He highlighted that the demerger separates the single largest graphite electrode plant globally into a pure-play entity, while positioning the advanced materials business with backing from green power and carbon-negative infrastructure (CNI) solutions.

EY acted as the structuring and tax advisor, while Khaitan & Co served as the legal advisor for the scheme.

HEG Limited has signed an agreement with Adfactors PR for media and public relations services. The agreement marks a formal engagement between HEG and Adfactors PR to support the company's communications and public relations requirements.

Agreement details

The partnership establishes Adfactors PR as HEG's designated agency for media and public relations services. The agreement underscores HEG's intent to strengthen its communications function through a professionally managed external engagement.