HEG Limited Shareholders Urged to Dematerialize Shares Ahead of Graphite Business Allotment

HEG Limited Shareholders Urged to Dematerialize Shares Ahead of Graphite Business Allotment​

Shareholders of HEG Limited have received urgent communication regarding the Composite Scheme of Arrangement, which involves the demerger of the Graphite Business from the Company. Physical shareholders are being advised to update their KYC details and dematerialize their shares before the designated Record Date to ensure seamless credit of equity in the Resulting Company, HEG Graphite Limited.

The scheme encompasses HEG Limited (the Company), HEG Graphite Limited (Resulting Company), and Bhilwara Energy Limited (Transferor Company). Under the terms of the Scheme, the Graphite Business of HEG Limited will be demerged into the Resulting Company.

Eligible shareholders who are recorded in the register of members or records of the depository on the Record Date are entitled to receive one equity share of the Resulting Company for every one equity share held in HEG Limited, as stipulated by Clause 8.1 of the Scheme.

Requirement for Dematerialization​

Equity shares of the resulting company can only be issued in Dematerialized (Demat) form, meaning no physical share certificates will be issued for the allotment under the Scheme. Consequently, all physical shareholders are requested to promptly update their KYC particulars and dematerialize their existing physical shares.

To ensure timely credit into a Depository Account, shareholders who do not possess one must open a Demat Account with any SEBI-registered Depository Participant (DP) of NSDL or CDSL. Shareholders are also required to complete the necessary documentation process, which includes providing self-attested copies of PAN and Aadhaar Cards, and duly filled forms (ISR-1, ISR-2 & SH-13).

Consequences of Non-Compliance​

The communication highlighted the consequences for shareholders who hold shares in physical form and fail to update their KYC or dematerialize before the Record Date. In such cases, the allotment of equity shares in the Resulting Company cannot be issued in physical form. The entitled shares may instead be credited to a designated Escrow Demat Account maintained for this purpose.

Claiming these escrowed shares subsequently will require completing prescribed documentation, KYC compliance, and dematerialization and verification procedures with the Registrar & Share Transfer Agent, which could result in avoidable delays. Shareholders are advised that immediate action is necessary for the timely receipt of their entitlement under the Scheme.

HEG Stock Price Movement​

Today, shares of HEG Limited edged higher to close at ₹672.65, climbing 3.22% on the back of strong buying pressure during today's session. The stock traded within an intraday range defined by a low of ₹636.15 and reached a high of ₹675.