Now Reading: HEG fixes September 7 as record date for demerger
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HEG fixes September 7 as record date for demerger
HEG Ltd has set September 7 as the record date for its proposed demerger, which will create two independent listed entities. Shareholders of HEG as on the record date will receive one…
HEG Ltd has set September 7 as the record date for its proposed demerger, which will create two independent listed entities. Shareholders of HEG as on the record date will receive one fully paid-up equity share of face value Rs 2 in the resulting company for every one equity share of face value Rs 2 held in HEG, a 1:1 entitlement.
As part of the scheme, Bhilwara Energy will be amalgamated with HEG, with HEG issuing eight equity shares of face value Rs 2 for every seven equity shares of face value Rs 10 held in Bhilwara Energy. The graphite electrodes business will move into HEG Graphite, which will be renamed HEG Ltd and listed as a pure-play graphite electrodes company. The existing listed entity will retain advanced materials, battery energy solutions and green power businesses and will be renamed HEG Advanced Materials.
Ravi Jhunjhunwala will lead HEG Graphite as Chairman, Managing Director and CEO from September 1, while Riju Jhunjhunwala will be Chairman, MD and CEO of HEG Advanced Materials for a five-year term. Five non-executive independent directors have been appointed to the board of HEG Advanced Materials.
Indian Opinion Analysis
Corporate demergers of this kind aim to unlock shareholder value by letting each business trade at its own valuation multiple. Graphite electrodes, used in electric-arc steelmaking, face a different demand cycle than advanced materials and battery energy. The 1:1 share entitlement means existing HEG shareholders will own the same number of shares in the new electrodes company. HEG Advanced Materials inherits the synthetic graphite anode material business, which competes in the growing lithium-ion battery supply chain. Investors will now watch the listing date of HEG Graphite and the stock price discovery for both entities.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
