HEG Limited Receives NCLT Approval for Demerger into Two Listed Pure-Play Entities

HEG Limited has received formal sanction from the NCLT (Indore Bench) for its Composite Scheme of Arrangement, marking a decisive structural milestone designed to unlock shareholder value and eliminate the historic conglomerate discount. Key Highlights: Two Independent Entities: The restructuring splits the company into two separately listed pure-plays: HEG Limited: The demerged entity retaining the mature, cash-generative graphite electrode (EAF consumables) business. HEG Greentech Limited: The restructured parent vehicle focusing on clean energy, hydro power, battery storage, and advanced battery materials (via subsidiary TACC and the absorption of Bhilwara Energy Limited). Shareholder Entitlement: Existing shareholders will receive shares in the new graphite entity in a 1:1 ratio, while simultaneously retaining their holdings in the surviving HEG Greentech entity. Strong Financial Backdrop: The approval follows a robust Q1 FY27 performance, where standalone revenue grew 11% YoY to ₹681 crore and EBITDA surged 38% YoY to ₹211 crore (expanding margins to 29%). Strategic Rationale & Outlook: Conglomerate De-Risking: By isolating the high-beta, cyclical graphite business from the secular, high-growth clean-tech operations, the demerger allows distinct management teams to pursue tailored capital allocation and growth strategies. Targeted Investment Vehicle: The creation of HEG Greentech provides investors with a highly focused platform to capture India's expanding clean energy storage and battery material supply chain, while the graphite entity remains a globally competitive leader in its core manufacturing segment.