HEG Limited Board approves demerger of its Graphite Business to a new company. In addition, the company (post the demerger) will consolidate Bhilwara Energy Limited (‘BEL’) with itself. TACC Limited to continue as a wholly owned subsidiary of the existing company.  The existing company to become a platform for green energy businesses, inter-alia, Hydro and Wind energy through merged BEL, Energy Storage Solutions through RePlus, Advanced Carbon business through TACC Limited and other opportunities in the new age businesses. Creation of two strong, independent entities able to better address growth prospects and provide focused approach and management 

Mr. Ravi Jhunjhunwala, Chairman and Managing Director, CEO, HEG Limited, said, “The existing company and the New Company will script new paths as two independent, publicly listed companies. The underlying growth drivers, risk profile and capital allocation requirements are fundamentally different in the Graphite business compared to the green energy business. The Scheme will enable both companies to pursue their strategies and have focused management. This will enable the full value of each of the businesses to be unlocked for the benefit of the shareholders.” 

Mr. Riju Jhunjhunwala, Vice-Chairman, HEG Limited, said, “This is a significant step forward in our company’s journey towards sustainability. With the pursuit of expansion into new age and green energy businesses, this strategic decision unlocks the full potential of both businesses, allowing them to pursue focused growth strategies and maximize value for our shareholders. This step will create a more agile and competitive entity which can tap opportunities in the clean energy space. Shareholders will have shares of 2 publicly listed companies, each with a sharper strategic focus and enhanced investment profile. Shareholders will benefit from owning shares in both entities, with the potential for increased value creation in the long run. We are confident that this demerger is the right decision for our company, our employees, and our shareholders. We look forward to the exciting possibilities that lie ahead for both businesses.”
(Source: HEG Press Release)