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.

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.