Ltd shares fell around 64% to ₹260 on September 7, but the sharp decline was due to the company's demerger and the resulting price adjustment, rather than an actual destruction of shareholder value. The stock had closed at around ₹728 on Friday, while September 7 was the official ex-date for the demerger. Under the approved scheme, HEG's business has been divided into two separate entities. The existing listed company, HEG Advanced Materials Ltd, will focus on advanced materials and carbon applications while retaining its advanced materials, battery energy solutions and green power businesses. The graphite electrode business has been transferred to a separate entity, HEG Graphite Limited. For shareholders, the key point is the 1:1 demerger ratio. For every one fully paid-up equity share of HEG Advanced Materials held on the record date, shareholders will receive one fully paid-up equity share of HEG Graphite Limited. Therefore, the apparent 64% fall in the existing stock price does not represent an equivalent loss in the investor's overall holding value. HEG Graphite is expected to be listed on the stock exchanges in the second half of October 2026, after which it is proposed to be renamed HEG Limited. Ravi Jhunjhunwala will serve as Chairman, Managing Director and CEO of HEG Graphite, while continuing as a director of HEG Advanced Materials. The demerger is therefore intended to separate the graphite electrode business from the advanced materials and other businesses into distinct entities.

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