HEG Demerger Approved: 1:1 Share Swap for Shareholders

HEG Ltd, the Noida-based graphite electrode manufacturer, has secured crucial approval from the National Company Law Tribunal (NCLT), Indore Bench, for its Composite Scheme of Arrangement. This pivotal decision greenlights the demerger of HEG into two independently listed entities, significantly restructuring its corporate framework.

Under the approved scheme, existing shareholders of HEG Ltd are set to receive one share of HEG Graphite Ltd for every one HEG share they currently hold. The NCLT order was formally uploaded on August 18, 2026, with the scheme becoming effective upon filing a certified copy with the Registrar of Companies (RoC).

Strategic Restructuring Details

• The demerger creates two distinct entities: one focused on the graphite electrode business.
• The second entity will concentrate on advanced materials, battery energy solutions, and renewable energy.
• The move aims to establish independent businesses with separate strategic mandates and distinct capital structures.
• Shareholders gain direct exposure to both the established graphite electrode segment and the growth platform in advanced materials.

This NCLT approval follows prior clearances from the boards and shareholders of the involved companies, alongside no-objection letters from both the BSE and NSE. EY provided advisory services for structuring and tax, while Khaitan & Co served as legal advisor for the comprehensive scheme.

Riju Jhunjhunwala, Vice Chairman of HEG, expressed satisfaction regarding the NCLT’s decision. He highlighted the approval as a