HEG picks up 8.23% stake in GrafTech International

8 Oct 2024 , 02:41 PM

On Monday (October 7), graphite electrode maker HEG Ltd announced that it has acquired an 8.23% share in GrafTech International Ltd, a graphite electrode manufacturing firm listed on the New York Stock Exchange, through secondary market transactions.

HEG invested a total of ₹248.62 Crore in this deal. GrafTech, with a market capitalisation of around $416.61 million, manufactures graphite electrodes, an area that is closely related to HEG’s core business.

HEG noted that any subsequent share purchases will require board approval. GrafTech International is a major manufacturer of high-quality graphite electrodes used in the manufacturing of electric arc furnace steel and other ferrous and nonferrous metals.

It boasts a competitive portfolio of low-cost, ultra-high-power graphite electrode manufacturing facilities, including some of the world’s largest. GrafTech International has a global footprint.

In May of this year, HEG approved the demerger of its graphite business into a separate company, as well as the merger of Bhilwara Energy with itself. This approach aims to increase value for shareholders.

The company said that the demerger will result in a 1:1 share swap ratio. For the merger, HEG stated that the transferee company will issue 8 fully paid-up equity shares of ₹10 each, for every 35 equity shares of ₹10 each of the transferor company. The equity shares issued by the resulting business will be traded on both the BSE and the NSE.

At around 2.00 PM, HEG was trading 6.38% higher at ₹2,370.05 per piece, against the previous close of ₹2,227.90 on NSE. The counter touched an intraday high and low of ₹2,384, and ₹2,215, respectively.

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