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HEG Shares Drop 64% as Demerger Resets Trading Price
HEG’s share price looked as if it suddenly lost more than half its value.
But this was mainly because the company split part of its business into a new company.
Stock exchanges adjusted the old share price to reflect that separation.
The adjusted price was about ₹260, and the stock later reached ₹273.
Shareholders did not simply lose the separated business’s value.
Instead, they are expected to receive one share in the new HEG Graphite for each share they already held.
The remaining company is called HEG Advanced Materials and will keep several other businesses.
HEG Graphite is expected to be listed in October 2026.
HEG’s share price appeared to fall 64% from about ₹728 to ₹260 on September 7.
The decline reflected an exchange adjustment for HEG’s demerger, not a reported financial crisis.
HEG’s businesses have been divided between HEG Advanced Materials and HEG Graphite.
Shareholders will receive one HEG Graphite share for every HEG Advanced Materials share held.
HEG Graphite is expected to list in the second half of October 2026 and may then be renamed HEG Limited.
- Who
- HEG Limited and its shareholders; the demerged entities are HEG Advanced Materials Limited and HEG Graphite Limited.
- What
- HEG’s trading price was recalibrated after a demerger divided its businesses into two entities.
- Where
- On the stock exchanges; the article does not specify a location.
- When
- The ex-date was September 7; HEG Graphite is expected to list in the second half of October 2026.
- Why
- The exchange adjusted HEG’s price to account for the business transferred into the separately listed HEG Graphite entity.
Key facts
- Pre-adjustment closing price
- Approximately ₹728 on Friday
- Adjusted opening price
- Approximately ₹260 on September 7
- Day’s high
- ₹273, about 5% above the adjusted base price
- Demerger ratio
- One HEG Graphite share for every one HEG Advanced Materials share
- New entity
- HEG Graphite, proposed as a pure-play graphite electrode business
- Expected listing
- Second half of October 2026
- Proposed leadership
- Ravi Jhunjhunwala will serve as Chairman, Managing Director and Chief Executive Officer of HEG Graphite from September 1, 2026
Sources
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