HEG Shares Surge 6% Post Block Deal

5 Dec 2024 , 12:25 PM

Following the completion of a block trade for Rs 172 crore on the exchanges and amid optimism for Indian graphite electrode producers following China’s decision to impose a harsher approval process for graphite exports to the US, shares of HEG increased 6.4% on Thursday to Rs 619.25 on the BSE. This sparked expectations that the limitations would boost demand for graphite suppliers in India.

According to ET Now, around 28.8 lakh shares of HEG, or 6% of the company’s equity, were sold on the open market for an average of Rs 600 per share.

Meanwhile, there is hope that demand for graphite from Indian producers like HEG and Graphite India may rise as a result of China’s move to tighten its export limits on the material. On the basis of general optimism, HEG shares continued their winning run into the third session.

Graphite, which is utilised in military applications and the manufacture of electric vehicle (EV) batteries, is largely supplied by China, the largest producer in the world. The US may have less access to graphite as a result of China’s recent decision to tighten export regulations, which could increase demand for Indian producers.

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