HEG has cleared the final operative steps of its Composite Scheme of Arrangement (Scheme), which will result in the creation of two strong independent listed entities.

The Board has approved Tuesday, 01 September 2026, as the Effective Date and Monday, 07 September 2026, as the Record Date for shareholder entitlement.

Under the demerger, 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 same Scheme, Bhilwara Energy will be amalgamated into 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.

On the Scheme taking effect:

- The Company's graphite electrodes business will move into the resulting company, HEG Graphite, which is proposed to be renamed HEG and taken forward as a separately listed, pure-play graphite electrodes company.

- The existing listed entity (BSE: 509631, NSE: HEG) will retain the advanced materials, battery energy solutions and green power businesses and is proposed to be renamed HEG Advanced Materials.

Pursuant to the scheme, Ravi Jhunjhunwala will lead HEG Graphite as Chairman, Managing Director and Chief Executive Officer with effect from 01 September 2026. He will also continue on the board of HEG Advanced Materials.

Similarly, Riju Jhunjhunwala has been elevated to the positions of Chairman, Managing Director, and Chief Executive Officer of HEG Advanced Materials for a five-year term, subject to shareholder approval.