HEG Limited , a leading graphite electrode manufacturer, has announced significant strategic decisions following its recent board meeting. The company's board has approved two major transactions that could shape its future growth and investment strategy.

Investment in TACC Limited

HEG's board has given the green light for a substantial investment of up to 6.33 billion rupees (approximately $76 million) in unsecured, unlisted optionally convertible debentures (OCDs) of TACC Limited, a wholly-owned subsidiary of HEG. This investment will be made through a Debenture Subscription Agreement, with the OCDs to be issued in one or more tranches.

Key features of the OCD investment include:

• Conversion Option: HEG has the discretion to convert the OCDs into equity shares of TACC Limited at any time before the redemption date.
• Coupon Rate: 0.01% per annum, payable annually, or as mutually agreed upon.
• Redemption: If not converted, the OCDs may be redeemed by TACC Limited on March 31, 2036, or an earlier agreed date, at a premium of 12.50% per annum compounded annually.

The proceeds from this issuance are earmarked for TACC Limited's research and development, business expansion, capital expenditure, working capital requirements, and other general corporate purposes.

Stake Sale in Texnere India Private Limited

In a separate development, HEG's board took note of a decision by its wholly-owned subsidiary, Bhilwara Infotechnology Limited (BIL), to sell its 26% stake in Texnere India Private Limited. This decision follows a previous business transfer agreement and shareholding arrangement. The proposed sale is based on a valuation report from a SEBI-registered Category-I Merchant Banker.

Additional Board Decisions

The board meeting also resulted in several other key decisions:

1. Appointment of New Executive

Shri Puneet Anand has been appointed as President and Group Chief Strategy Officer of HEG Limited, effective December 1, 2025. Anand, who will also serve as a Key Managerial Personnel, brings over 17 years of experience in strategy, transactions, tax, and family-owned enterprises.

2. Regulatory Matters

The board acknowledged receipt of show cause notices from the Office of the Deputy Commissioner (SGST) Mandideep Circle, Bhopal Division-2. These notices, for the tax periods FY 2019-20 and FY 2020-21, propose recovery of IGST refunds along with penalties amounting to 282.34 crore rupees for each tax period. HEG expressed confidence that their IGST refunds are in order and expects the matter to be resolved favorably.

These strategic moves by HEG Limited indicate the company's focus on strengthening its subsidiaries, optimizing its investment portfolio, and enhancing its leadership team. The substantial investment in TACC Limited, in particular, suggests a strong commitment to future growth and expansion in research and development capabilities.

HEG Limited , a prominent player in the graphite electrode industry, has announced a significant development for its wholly-owned subsidiary, TACC Limited. The State Bank of India (SBI) has sanctioned a substantial credit facility of Rs. 1,230 crores to TACC, marking a major step forward in the company's expansion plans.

Project Details

The credit facility is earmarked for a specific purpose:

This financial backing from SBI is designed to provide partial funding for the development of the new manufacturing facility. The project represents a strategic move by HEG to diversify its portfolio and tap into the growing market for lithium-ion battery components.

Strategic Implications

The decision to venture into lithium-ion battery grade graphite anode production is significant for several reasons:

1. Market Expansion: By entering the lithium-ion battery supply chain, HEG is positioning itself to capitalize on the growing electric vehicle and energy storage markets.

2. Vertical Integration: This move could potentially allow HEG to leverage its expertise in graphite-based products, extending its value chain into high-growth sectors.

3. Domestic Manufacturing: The project aligns with India's push for domestic manufacturing in critical technology sectors, potentially benefiting from supportive government policies.

Financial Disclosure

HEG Limited made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has stated that this information will be available on both HEG Limited's website ( www.hegltd.com ) and TACC Limited's website ( www.tacclimited.com ).

While the credit facility of Rs. 1,230 crores is substantial, it's important to note that this represents only a part of the total funding required for the project. The full scale of investment and additional funding sources, if any, have not been disclosed in the current announcement.

As the project progresses, investors and industry observers will likely keep a close watch on its development timeline, potential impact on HEG's financial performance, and its implications for the broader lithium-ion battery supply chain in India.