HEG Advanced Materials shares jump 8% on new orders and demerger progress

The rally follows fresh orders secured by the company's subsidiary, Replus Engitech, from Indus Towers. In September, Replus Engitech received an order worth ₹218 crore for the supply of Lithium-Ion Battery Banks. This was followed by another order on October 1, valued at ₹127 crore, to be executed by May 31, 2027.

Replus Engitech and Indus Towers have also signed a Memorandum of Understanding to explore collaboration on Battery Energy Storage System (BESS) solutions for telecom infrastructure. Under the MoU, Replus intends to make available dedicated BESS production capacity of 1.5 GWh over a two-year period and plans to expand its portfolio of telecom energy storage solutions, including emerging technologies like sodium-ion batteries.

Market sentiment has also been bolstered by the progress in the company's demerger scheme. As part of the arrangement, the graphite electrodes business is being carved out into a new entity, HEG Graphite, which is set to list as a standalone company by the end of October.

Under the demerger, shareholders of HEG Advanced Materials will receive one fully paid-up equity share of HEG Graphite for every share held on the record date of September 7, on a mirror basis. Ravi Jhunjhunwala will lead HEG Graphite as Chairman, Managing Director and CEO from September 1, 2026, while continuing in a non-executive role on the board of the advanced materials company.

Riju Jhunjhunwala remains the Chairman, Managing Director and CEO of HEG Advanced Materials for a five-year term, subject to shareholder approval. Post-demerger, HEG Advanced Materials will focus on anode materials, graphene, and future materials such as silicon-based anodes, while building a large-scale anode materials business.