HEG (HEG) Investor update summary

Strategic rationale and transaction structure

• The company is executing a composite scheme to demerge its graphite electrode business into a separate listed entity and form a new listed HEG Greentech focused on clean tech, aiming for sharper business focus and value unlocking for shareholders.

• Shareholders will receive shares in both the new graphite company and HEG Greentech, with a 1:1 share issuance for the graphite business and a merger of Bhilwara Energy Limited (BEL) into HEG Greentech, using independently determined swap ratios.

• Post-implementation, the graphite business will be renamed HEG Limited, and the current entity will become HEG Greentech Limited, ensuring continuity and direct ownership in both businesses.

• The restructuring is targeted for completion by June–July 2026.

HEG Greentech business pillars and growth plans

• HEG Greentech will operate across advanced battery materials, battery energy storage solutions (BESS), renewable energy IPP, and hydroelectric power, targeting India's accelerating energy transition.

• The advanced battery materials vertical is setting up a 20,000 TPA synthetic graphite anode plant, with plans to expand to 60,000 TPA by FY32, leveraging in-house technology and pilot plant validation with global OEMs.

• RePlus, the battery energy solutions arm, is expanding from 1 GWh to 6 GWh cell-to-pack capacity, serving marquee customers and developing proprietary battery and grid management solutions.

• The renewable IPP platform is building storage-led projects, with recent wins including a 200 MWh BESS project in Gujarat and L1 status for a 1,000 MWh project in Maharashtra.

• Two debt-free hydroelectric plants generate steady cash flows and high EBITDA margins, with a conditional agreement to acquire a third hydro asset in Uttarakhand.

Greentech platform and growth strategy

• Greentech platform integrates hydro, solar, BESS, and advanced battery materials, with 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, aiming to be a top-3 storage-led RE platform in India.

• Well-capitalized with ₹500 crore strategic investment and robust free cash flows from hydropower.