HEG acquires 8.23% stake in NYSE-listed GrafTech International for ₹248.62 crore
Graphite electrode maker HEG Ltd on Monday (October 7) said it has acquired an 8.23% stake in GrafTech International Ltd, a graphite electrode manufacturing company listed on the New York Stock Exchange, through secondary market transactions.
"...we wish to inform you that HEG Limited (the company) has invested in the shares of GrafTech International Ltd., an NYSE Listed Company (Graftech), through the Secondary Market Transactions/Overseas Portfolio Investment (OPI) scheme of Foreign Exchange Management (Overseas Investment) Rules, 2022," according to a stock exchange filing.
The total investment made by HEG for this acquisition amounts to
248.62 crore. GrafTech, with a market capitalisation of approximately $416.61 million, specialises in the production of graphite electrodes, a segment closely aligned with HEG's core business.
Also Read: Explained — Why shares of HEG and Graphite India are surging today
HEG stated that further share purchases, if undertaken, will be subject to board approval. GrafTech International is a leading manufacturer of high-quality graphite electrode products essential to the production of electric arc furnace steel and other ferrous and non-ferrous metals.
It has a competitive portfolio of low-cost, ultra-high power graphite electrode manufacturing facilities, with some of the highest capacity facilities in the world. GrafTech International has its presence globally.
In May this year, HEG approved the demerger of its graphite business into a new company and the merger of Bhilwara Energy with itself. This move is intended to unlock value for shareholders.
The turnover of the graphite business was 94.41% of the company's total turnover in the financial year 2024. The listing of the graphite business is expected to be completed in 2025, HEG said.
Also Read: This graphite electrode manufacturer expects margin pressure to persist for 2-3 quarters
The existing company will be turned into a platform for green energy businesses, hydro and wind energy, advanced carbon business and other opportunities in the new age businesses, according to a company notification on May 22.
The demerger will result in a share swap ratio of 1:1, while for the merger, HEG said, "8 fully paid-up equity shares of ₹10 each of the transferee company, for every 35 equity shares of ₹10 each of the transferor company." The equity shares to be issued by the resulting company will be listed on both the BSE and the NSE.
Shares of HEG Ltd ended at ₹2,226.25, down by ₹125.10, or 5.32% on the BSE.
"...we wish to inform you that HEG Limited (the company) has invested in the shares of GrafTech International Ltd., an NYSE Listed Company (Graftech), through the Secondary Market Transactions/Overseas Portfolio Investment (OPI) scheme of Foreign Exchange Management (Overseas Investment) Rules, 2022," according to a stock exchange filing.
The total investment made by HEG for this acquisition amounts to
248.62 crore. GrafTech, with a market capitalisation of approximately $416.61 million, specialises in the production of graphite electrodes, a segment closely aligned with HEG's core business.
Also Read: Explained — Why shares of HEG and Graphite India are surging today
HEG stated that further share purchases, if undertaken, will be subject to board approval. GrafTech International is a leading manufacturer of high-quality graphite electrode products essential to the production of electric arc furnace steel and other ferrous and non-ferrous metals.
It has a competitive portfolio of low-cost, ultra-high power graphite electrode manufacturing facilities, with some of the highest capacity facilities in the world. GrafTech International has its presence globally.
In May this year, HEG approved the demerger of its graphite business into a new company and the merger of Bhilwara Energy with itself. This move is intended to unlock value for shareholders.
The turnover of the graphite business was 94.41% of the company's total turnover in the financial year 2024. The listing of the graphite business is expected to be completed in 2025, HEG said.
Also Read: This graphite electrode manufacturer expects margin pressure to persist for 2-3 quarters
The existing company will be turned into a platform for green energy businesses, hydro and wind energy, advanced carbon business and other opportunities in the new age businesses, according to a company notification on May 22.
The demerger will result in a share swap ratio of 1:1, while for the merger, HEG said, "8 fully paid-up equity shares of ₹10 each of the transferee company, for every 35 equity shares of ₹10 each of the transferor company." The equity shares to be issued by the resulting company will be listed on both the BSE and the NSE.
Shares of HEG Ltd ended at ₹2,226.25, down by ₹125.10, or 5.32% on the BSE.