HEG enters the execution phase of a transformational restructuring that will result in two independently listed companies, each with a distinct strategic mandate, focused leadership and its own capital structure, the company said in a statement.
One company will be dedicated to Graphite Electrodes business, and the other will be dedicated to advanced materials, it added.
Investors direct and differentiated exposure to a mature, cash-generative graphite electrode business on the one hand, and a fast-scaling growth platform focused on advanced materials, battery energy solutions and renewable energy on the other, the company said.
“For over five decades, the LNJ Bhilwara Group has built a deep understanding of the science of carbon and its applications—long before carbon became a strategic material for the industries of tomorrow. That knowledge, experience and patience have now evolved into two distinct platforms,” Ravi Jhunjhunwala, Chairman, MD & CEO, HEG, said.
HEG Ltd will continue to build on its global graphite electrode legacy, while the new company is a natural evolution of our expertise in carbon and advanced materials—extending it into the technologies that will power the next industrial era, he added.
“With capabilities spanning advanced battery materials, renewable power, storage and hydro energy, we aim to build a differentiated, integrated platform that is globally competitive, positioned to scale and capable of contributing meaningfully to India’s energy transition,” Ravi Jhunjhunwala, said.
Both platforms operate in sectors with strong long-term growth potential, he said.
The approval is obtained for demerging HEG Ltd. into two companies – one that houses the single largest plant of its kind in the world and is purely focussed on graphite electrodes and the other which focuses on advanced materials with a solid backing of green power and CNI based solutions, Riju Jhunjhunwala, Vice Chairman, HEG, said.
The Scheme will create two focused, independently valued businesses, each with a clear strategy, disciplined capital allocation and the flexibility to pursue its own growth path. We believe this sharper focus will enable each business to unlock its full potential, he said.
Shareholders of HEG Limited will receive one equity share of HEG Graphite Limited for every one share held in HEG Limited