HEG (HEG) Investor update summary

Strategic rationale and structure of the demerger

• The company is demerging its graphite electrode business into a new listed entity and forming HEG Greentech to focus on clean tech, aiming for sharper strategic focus and value unlock for shareholders.

• Shareholders will receive shares in both the graphite and greentech companies, with a 1:1 share issue and renaming of entities post-approval, targeting completion by June–July 2026.

• The merger of Bhilwara Energy Limited (BEL) into HEG Greentech brings two hydroelectric assets, with shares issued to BEL shareholders based on an independent swap ratio.

• The structure is designed to ensure continuity, transparency, and improved capital allocation for each business.

Greentech platform, business pillars, and growth strategy

• HEG Greentech will operate across advanced battery materials, battery energy solutions (RePlus), renewable energy IPP, and hydroelectric power generation, integrating hydro, solar, BESS, and advanced battery materials.

• The platform has 278 MW hydro, 0.8 GWp solar, and 2.2 GWh BESS operational or under development, targeting 2.3 GWp solar and 5.9 GWh BESS by FY30.

• A 20,000 TPA anode material plant is under construction, expandable to 60,000 TPA by FY32, leveraging 50+ years of graphite expertise and targeting both ESS and EV markets.

• RePlus is expanding its cell-to-pack line to 6 GWh, serving marquee customers and developing smart battery and grid management solutions.

• Over 100 MWh BESS commissioned and 2,000 MWh under execution across India and EMEA, with strong traction in utility, EV, telecom, and data center markets.

Financials, capital allocation, and funding

• Planned CapEx of ₹4,300 crore by FY27 and ₹7,700 crore by FY30, with most investment in anode materials and RE power generation.

• Asset recycling model will be used for IPP projects, selling stabilized assets to improve returns.

• The company is well-capitalized for its growth plan, supported by internal accruals, hydro asset cash flows, and a ₹500 crore investment from Singularity in BEL.

• Debt associated with the graphite business will remain with that entity, while HEG Greentech will start with minimal net debt.