HEG Limited , a leading graphite electrode manufacturer, has made a significant financial move by approving an unsecured loan of ₹210 crore to its associate company, Bhilwara Energy Limited (BEL). This decision, aimed at supporting BEL's growth trajectory, was announced following a board meeting held on September 23, 2025.

Loan Details

The board of HEG Limited has greenlit the following terms for the unsecured loan:

• Amount: ₹210.00 crore (Rupees Two Hundred and Ten Crores)
• Interest Rate: 9.00% per annum
• Tenure: One year from the date of disbursement
• Repayment: Bullet payment (Principal and Interest) on the date of maturity

Strategic Implications

This financial arrangement holds strategic significance for both companies:

1. Growth Support: The primary purpose of the loan is to fund the growth trajectory of Bhilwara Energy Limited.
2. Related Party Transaction: HEG confirmed that this transaction falls under the category of related party transactions, conducted at arm's length.
3. Existing Relationship: HEG currently holds a 40.42% stake in Bhilwara Energy Limited, making it an associate company.

Ongoing Corporate Restructuring

The loan approval comes against the backdrop of a larger corporate restructuring initiative:

• A composite scheme of arrangement is currently in process under sections 230 to 232 of the Companies Act.
• This scheme, approved by the boards of both HEG Limited and BEL on March 10, 2025, involves the amalgamation of Bhilwara Energy Limited with HEG Limited, following the demerger of HEG's Graphite Business undertaking.

Regulatory Compliance

HEG Limited has ensured transparency and regulatory compliance by:

• Disclosing the loan approval under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• Providing detailed information about the transaction, including the purpose, terms, and related party aspects.

The board meeting that approved this loan commenced at 13:30 and concluded at 14:15 on September 23, 2025. This strategic financial decision underscores HEG's commitment to supporting its associate company's growth initiatives while maintaining regulatory transparency.

HEG Limited announced that its associate company, Bhilwara Energy Limited, has successfully acquired Statkraft's 49% minority stake in Malana Power Company Limited. This strategic move positions the LNJ Bhilwara Group as the sole owner of Malana Power Company, marking a significant expansion in its renewable energy portfolio.

Transaction Details

The acquisition includes Statkraft's stakes in two hydropower plants in Himachal Pradesh:

1. Malana Hydropower Plant (86 MW)
2. Allain Duhangan Hydropower Plant (192 MW)

These plants have been operating as a 51:49 joint venture between LNJ Bhilwara Group and Statkraft since 2004, supplying clean and flexible energy to meet India's growing power demands.

Strategic Implications

Mr. Riju Jhunjhunwala, Managing Director of Bhilwara Energy, commented on the acquisition: "As we assume complete ownership of the Malana Power Company assets, LNJ Bhilwara Group is strategically positioned to scale its presence in the power sale business and actively explore new opportunities in renewable energy, with growth and technology at the core."

This move aligns with LNJ Bhilwara Group's long-term strategy to strengthen its position in the clean energy sector and contribute to India's sustainable growth story.

Statkraft's Perspective

Fernando de Lapuerta, Executive Vice President International at Statkraft, stated, "Our partnership with the LNJ Bhilwara Group has been a cornerstone of our Indian hydropower operations. These projects, when commissioned, paved the way for private sector investments in hydropower in India."

The divestment is in line with Statkraft's strategy to reallocate capital to its core markets in Europe and South America, allowing the Norwegian state-owned renewables company to focus on markets where it can achieve scale and long-term competitiveness.

LNJ Bhilwara Group's Renewable Energy Focus

With over two decades of experience in India's hydropower sector, the LNJ Bhilwara Group continues to play a pivotal role in advancing renewable energy adoption in the country. This acquisition further solidifies the Group's commitment to contributing to India's clean energy transition.

The transaction not only strengthens LNJ Bhilwara Group's position in the renewable energy sector but also demonstrates its dedication to sustainable development and clean power generation in India.

As HEG Limited's associate company takes full control of these significant hydropower assets, it sets the stage for potential growth and expansion in the renewable energy space, aligning with India's broader goals for sustainable energy development.