HEG’s Splitting Into Two - Will Unlock More Value?

HEG Ltd.

has fixed September 7, 2026 as the record date for its demerger, which will create two separately listed businesses focused on graphite electrodes and advanced materials. What’s Changing? Under the 1:1 demerger ratio, existing shareholders will receive one share of the spun-off company for every HEG share held on the record date. For example, an investor holding 10 HEG shares will eventually hold 10 shares in the graphite-electrode business and 10 shares in HEG Advanced Materials. The existing HEG share price will adjust after the demerger to reflect the separation of the businesses. The graphite-electrode business will move into HEG Graphite, which is proposed to be renamed HEG, while the existing listed entity will retain the advanced materials, battery energy solutions and green power businesses and is proposed to be renamed HEG Advanced Materials. Why Is This Interesting? The demerger separates HEG's established graphite-electrode business from its newer advanced-materials opportunity. The company is focusing on scaling synthetic graphite anode materials and developing commercial-scale manufacturing capabilities, along with graphene applications. This could give investors a clearer way to value the two businesses based on their different growth profiles. My View The demerger could help investors value the two businesses independently, rather than looking at HEG as a single diversified entity. The established graphite-electrode business and the higher-growth advanced-materials operations have very different growth profiles, so the separation could potentially unlock value if both businesses receive appropriate valuations. However, expectations may already be partly reflected in the stock. HEG shares have gained around 51% over the past year and more than 15% in 2026, with the stock hitting a 52-week high of ₹749 earlier this month.