SBI Mutual Fund has reduced its shareholding in heg Limited through market sales, bringing its total stake down to 5.71% as of January 06, 2026. The transaction was disclosed under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Transaction Details

The mutual fund sold 7,23,723 shares representing 0.38% of HEG Limited's paid-up share capital through market transactions. This sale reduced SBI Mutual Fund's holding from 1,17,51,279 shares to 1,10,27,556 shares.

Shareholding Comparison

The disclosure shows a significant change in SBI Mutual Fund's position in HEG Limited compared to its previous substantial shareholding disclosure made in July 2024.

Company Share Capital Structure

HEG Limited's equity share capital remains unchanged at ₹38.60 crores, consisting of 19,29,77,530 equity shares with a face value of ₹2.00 each. The company's shares are listed on both BSE Limited and National Stock Exchange of India Limited.

Regulatory Compliance

The disclosure was made by Vinaya Datar, Chief Compliance Officer & Company Secretary of SBI Funds Management Limited, in compliance with SEBI regulations. The notification was sent to both stock exchanges where HEG Limited's shares are traded, ensuring transparency in substantial shareholding changes.

This reduction represents SBI Mutual Fund's strategic portfolio adjustment in HEG Limited, with the fund maintaining its position as a significant institutional investor despite the decreased stake.

Shares of graphite electrode manufacturers HEG Ltd and Graphite India witnessed substantial gains in the final trading session, as investors positioned themselves ahead of significant regulatory changes in the global steel industry.

Market Performance

The two companies demonstrated strong market performance during the trading session:

EU Carbon Border Adjustment Mechanism Impact

The rally was primarily driven by expectations surrounding the European Union's Carbon Border Adjustment Mechanism (CBAM), scheduled for implementation from 2026. Under this framework, steel and aluminium imports into the European Union will face taxation based on the volume of carbon emissions embedded in their production processes.

The mechanism is expected to raise landed costs for carbon-intensive steel exports, particularly those relying on traditional blast furnace routes. However, CBAM simultaneously creates incentives for cleaner production technologies, improving the competitive positioning of low-carbon steelmakers globally.

Strategic Positioning for Clean Steel Transition

Both HEG and Graphite India are strategically positioned to benefit from this transition as manufacturers of graphite electrodes, a critical input for electric arc furnace (EAF) steelmaking. EAFs represent a significantly less carbon-intensive alternative to traditional blast furnace methods and are central to the global shift towards greener steel production.

Industry Growth Projections

According to Emkay Global Financial Services analysis from December 2025, Indian graphite electrode producers are entering a fresh capital expenditure cycle to capture structural demand growth linked to EAF-based steel production.

Key Market Drivers

Emkay highlighted three primary global triggers supporting the outlook for graphite electrode manufacturers:

• China's Policy Shift: Measures to curb excessive competition in the steel sector
• CBAM Implementation: Europe's carbon border framework creating demand for cleaner production
• Global Policy Coordination: Coordinated efforts to lift the steel industry from prolonged downturn

These factors have collectively renewed investor interest in graphite electrode makers, positioning them as potential beneficiaries of the global transition towards cleaner and more efficient steel production technologies.