Shares of HEG started trading ex-graphite and gained three per cent to ₹274 a share on BSE against the day’s opening ₹265 on the back of potential value creation from the demerger of the company’s existing operations into two separate entities focused on graphite and advanced materials business.
The stock closed at ₹273 on the NSE, valuing the company (ex-graphite) at ₹5,300 crore. HEG was also renamed as HEG Advanced Materials since September 2.
As per the company’s demerger scheme, shareholders holding the company’s shares on September 7 will receive one share of the graphite company with a face value of ₹2 for every share held. HEG Graphite is expected to be listed on the exchanges in the second half of October.
Emkay Global Financial Services has assigned the graphite business an equity value of about ₹9,700 crore, or ₹500 per share, based on a 12 times multiple of the estimated June 2027 EV/EBITDA.
It valued the advanced-materials entity, which houses Bhilwara Energy and the battery-materials unit TACC (The Advanced Carbons Company), at about Rs 8,360 crore, or Rs 250 per share, using a 9 times EV/EBITDA multiple for Bhilwara Energy and a 20x FY28 P/E multiple for TACC.
Ravi Jhunjhunwala will continue to lead HEG Graphite as Chairman, Managing Director and Chief Executive Officer with effect from September 1 and will continue on the board of HEG Advanced Materials in a non-executive capacity.
Riju Jhunjhunwala is the Chairman, Managing Director and Chief Executive Officer of HEG Advanced Materials for a five-year term, subject to shareholders’ approval, and will also be on the Board of HEG Graphite in a non-executive capacity.
Riju Jhunjhunwala said earlier that it will create two focused, independently valued businesses, each with a clear strategy, disciplined capital allocation, and the flexibility to pursue its own growth path.
“We believe this sharper focus will enable each business to unlock its full potential while creating sustainable, long-term value for our shareholders,” he had said.