HEG Share Price Rise 5% on ₹500 Crore Investment in Bhilwara Energy

HEG share price rose 5% in early trade on Tuesday after the company announced a fundraising update. The stock opened at ₹408 on the NSE, gaining over 5% from the previous close of ₹387.80. It later touched an intraday high of ₹416, rising more than 4.5% even as broader markets remained weak. The Nifty 50 index was down 0.5% due to weak global cues.

HEG’s Fundraising Announcement

On March 10, 2025, HEG’s board approved a ₹500 crore investment into its subsidiary, Bhilwara Energy Ltd (BEL). Singularity Growth Opportunities Fund will invest ₹250 crore initially, with an option to invest another ₹250 crore later.

The board also approved a share subscription and shareholders’ agreement between HEG, Singularity Growth Opportunities Fund II, Bhilwara Energy Ltd, and existing BEL shareholders. As part of the deal, BEL will issue 1.75 crore new equity shares with a face value of ₹10 each. After the allotment, Singularity and its affiliates will own a 9.6% stake in Bhilwara Energy.

Impact on HEG’s Shareholding in BEL

Currently, HEG holds a 49.01% stake in Bhilwara Energy. After the investment, its stake will be reduced to 44.30%. If Singularity exercises its option to invest another ₹250 crore, HEG’s holding may decrease further.

This strategic investment aims to strengthen Bhilwara Energy’s financial position and support its growth plans.

About HEG Ltd

HEG Ltd is a top producer and exporter of graphite electrodes in India. It runs the world’s largest single-site integrated graphite electrode plant. The company is part of the LNJ Bhilwara Group, which also operates in IT-enabled services, power generation, and textiles.

Conclusion

The investment in Bhilwara Energy is expected to enhance its financial strength and growth prospects. HEG’s reduced stake signals strategic capital restructuring for future expansion.

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