HEG Limited Subsidiary Receives RBI Compounding Order with ₹43,550 Penalty for FEMA Violation

HEG Limited has disclosed a regulatory compliance matter concerning its wholly-owned subsidiary Bhilwara Infotechnology Limited (BIL) through an official intimation to stock exchanges on December 11, 2025. The disclosure pertains to a compounding order issued by the Reserve Bank of India's Foreign Exchange Department for violations under the Foreign Exchange Management Act (FEMA).

RBI Compounding Order Details

The regulatory action stems from contraventions under Para 9(1)(B) of Schedule I of FEMA 20/2000-RB, specifically related to delayed reporting of Form FC-GPR by Bhilwara Infotechnology Limited. The company filed a compounding application under the Foreign Exchange (Compounding Proceedings) Rules, 2024 to address the violation.

Parameter:	Details
Authority:	Foreign Exchange Department, Reserve Bank of India, New Delhi
Order Number:	CA No. NDL1374/2025
Order Date:	December 11, 2025
Receipt Time:	05:05 P.M. on December 11, 2025
Compounding Fee:	₹43,550.00

Nature of Violation

The violation relates to the delay in reporting of FC-GPR (Foreign Collaboration-General Permission Route) post-allotment of merger shares. According to the company's disclosure, this delay occurred due to oversight and unawareness of the specific provisions under FEMA regulations. The matter required filing a compounding application to resolve the regulatory non-compliance.

Financial Impact Assessment

HEG Limited has explicitly stated that the compounding order and associated penalty will have no material impact on the company's financial, operational, or other activities. The relatively modest penalty amount of ₹43,550.00 reflects the administrative nature of the violation rather than any substantive regulatory breach.

Regulatory Compliance Framework

This disclosure was made pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Specifically, it falls under Clause 20 of Para A of Part A of Schedule III, which mandates disclosure of material events and information by listed entities.

The company has fulfilled its obligation to inform both BSE Limited and National Stock Exchange of India Limited about this regulatory development, ensuring transparency with stakeholders and maintaining compliance with listing requirements.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.14%	+4.62%	+10.80%	+12.04%	+3.69%	+210.94%

HEG Limited , a leading manufacturer of graphite electrodes, has announced its financial outlook and strategic plans, signaling confidence in its market position and operational performance.

EBITDA Guidance

HEG has reported an operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) between Rs 450-500 crores for the current period. The company has stated its intention to maintain this EBITDA range for the upcoming year as well. This consistent EBITDA guidance suggests stability in HEG's core operations and profitability.

Market Share Expansion

The company has also announced an increase in its market share, indicating growth in both short-term and long-term value propositions. This expansion could potentially translate to improved revenue streams and a stronger competitive position in the graphite electrode industry.

Strategic Restructuring

HEG expects to see benefits from its ongoing demerger process, pointing to strategic restructuring efforts within the company. While specific details of the demerger were not provided, such corporate actions often aim to streamline operations, focus on core competencies, or unlock shareholder value.

Outlook

The maintenance of EBITDA guidance, coupled with market share growth and strategic restructuring, paints a picture of a company focused on stability and growth. HEG's ability to maintain its EBITDA projections could be seen as a positive indicator of its operational efficiency and market positioning.

Investors and market watchers will likely keep a close eye on HEG's performance in the coming quarters to see if the company can deliver on its EBITDA guidance and capitalize on its expanded market share. The progress and outcomes of the demerger process will also be of interest, as they could significantly impact the company's future structure and value proposition.