Synopsis

HEG shares rose sharply on Monday after subsidiary Replus Engitech received a Rs 217.56 crore order from Indus Towers for lithium-ion battery banks. The order is to be executed by March 31, 2027. The development comes as HEG progresses with its demerger into separate graphite electrodes and advanced materials businesses.

HEG’s Replus Engitech to supply lithium-ion battery banks under the new contract.

Shares of HEG rallied up to 5% on Monday to day’s high of Rs 248.90 on NSE after the company said that Replus Engitech Private, a subsidiary of the company, received orders from Indus Towers (formerly Bharti Infratel Limited) for the supply of Lithium-Ion Battery Banks worth Rs 217.56 crore.

According to the filing with the exchange, the company said that Replus Engitech Private, a subsidiary of the company, has been awarded by a domestic entity for supply of Lithium-Ion battery banks. The broad consideration or size of the order(s)/contract(s) which is Rs 217.56 crore is inclusive of GST.

The order(s)/contract(s) are to be executed on or before March 31, 2027, or such extended date as may be mutually agreed upon by the parties.

Also Read | HEG demerger to take effect on September 1; record date fixed for September 7

The company also mentioned that the transaction does not fall under related party transactions and no promoter/ promoter group/group companies have any interest in the entity that awarded the order(s)/contract(s).

REPLUS Engitech Private Limited, a subsidiary of Bhilwara Energy Limited, is a fast-growing, technology-driven manufacturer at the forefront of India’s Battery Energy Storage System (BESS) and Electric Vehicle (EV) markets, according to the company’s website.

The company said it specialises in advanced lithium-ion technology and delivers secure, intelligent and reliable energy storage solutions, backed by in-house expertise in battery management systems (BMS) and energy management systems (EMS). Its offerings include AI-enabled battery pack manufacturing for stationary storage across residential, commercial, industrial and transmission and distribution (T&D) applications, as well as telecom, hybrid systems and e-mobility applications, including 2W, 3W, LCVs and AGVs.

Earlier this month, the company announced its demerger into two separately listed entities focused on graphite electrodes and advanced materials.

The graphite electrodes business will move to HEG Graphite, which is proposed to be later renamed to HEG and run as a pure-play graphite electrodes company. The existing listed company will retain the advanced materials, battery energy solutions and green power businesses. It is proposed to be renamed HEG Advanced Materials after the demerger.

As part of the demerger, HEG shareholders will receive one share with a face value of Rs 2 each in the company being spun off for every share they hold in the existing HEG. This means the demerger ratio has been fixed at 1:1.

As part of the same scheme, Bhilwara Energy will be amalgamated into HEG. Under the arrangement, HEG will issue eight equity shares with a face value of Rs 2 each for every seven equity shares with a face value of Rs 10 each held in Bhilwara Energy. It is important to note that Bhilwara Energy is an unlisted company.

Also Read | Did HEG shares really crash 64% in one day? Here’s how the demerger math works

HEG’s share price has declined 65% over the past month and 60.27% so far this calendar year. The stock has fallen 52.43% over the past year, while its three-year and five-year declines stand at 28% and 42.24%, respectively.

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