Singularity Funds acquires 13.04% stake in HEG via scheme of arrangement
- Singularity Funds and PACs acquire 13.04% stake in HEG Advanced Materials
- Transaction involves 43.07 million shares via NCLT-sanctioned scheme
- Allotment ratio: 8 HEG shares for every 7 Bhilwara Energy shares
- Total equity capital rises to 659.6 million shares post-acquisition
- No shares are pledged or encumbered by the acquirer group
*this image is generated using AI for illustrative purposes only.
Singularity Funds and its persons acting in concert (PACs) have acquired a 13.04% stake in HEG Advanced Materials Limited through a composite scheme of arrangement.
The acquisition, disclosed under Regulation 29(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, was completed on September 12, 2026. The transaction involved the allotment of 43,070,852 equity shares to the acquirer group.
Acquisition Details
The stake was acquired pursuant to a Scheme of Arrangement sanctioned by the Hon'ble NCLT, Indore Bench, on August 13, 2026. The scheme involved HEG Advanced Materials Limited (formerly HEG Limited), HEG Graphite Limited (Resulting Company), and Bhilwara Energy Limited (Transferor Company).
Under the terms of the scheme, eligible shareholders received 8 equity shares of HEG Advanced Materials for every 7 equity shares of Bhilwara Energy held as on the record date of September 1, 2026.
Shareholding Breakdown
The total acquisition is distributed across multiple funds and entities within the Singularity group. None of the acquired shares are encumbered or pledged.
| Entity | Shares Acquired | Stake Acquired |
|---|---|---|
| Singularity Equity Fund I | 5,308,877 | 1.61% |
| Singularity Growth Opportunities Fund II | 10,992,398 | 3.33% |
| Singularity Large Value Fund II | 1,990,829 | 0.60% |
| Singularity Large Value Fund III | 4,021,878 | 1.22% |
| Affiliates | 7,999,480 | 2.42% |
| Singularity AMC LLP Co-PMS | 12,757,390 | 3.86% |
| Total | 43,070,852 | 13.04% |
Capital Structure Impact
The equity share capital of HEG Advanced Materials increased from 385,955,060 shares before the acquisition to 659,597,824 shares after the allotment. The total diluted share capital remains at 659,597,824 shares, indicating no outstanding convertible securities or warrants were assumed in this calculation.
What the Numbers Show
The acquisition structure reveals a concentrated holding strategy within the Singularity group, with Singularity AMC LLP Co-PMS holding the largest single tranche at 3.86% of the post-acquisition capital. The combined entity now holds a significant minority stake, crossing the 10% threshold that often triggers enhanced disclosure requirements and potential strategic influence, though the filing does not specify any board representation changes.
The increase in total share capital by approximately 70.9% (from ~386 million to ~660 million shares) reflects the substantial nature of the merger with Bhilwara Energy Limited, diluting existing shareholders proportionately while integrating the transferor company's equity base into HEG Advanced Materials.
Historical Stock Returns for HEG
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.57% | -16.84% | -69.32% | -56.65% | -58.20% | -52.20% |
Will Singularity Funds seek board representation or strategic influence now that its stake exceeds the 10% threshold?
How will the integration of Bhilwara Energy Limited impact HEG Advanced Materials' operational synergies and cost structure?
What is the expected timeline for Singularity Funds to increase its stake further or initiate a public offer under SEBI takeover regulations?
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