HEG Announces Buyback At Rs. 5,500 per share; Capacity Expansion Plan of approx. Rs.1,200 crore

27/11/2018, NOIDA: HEG Ltd., India’s largest single site manufacturing facility of Graphite Electrodes, said its Board has approved a buyback of equity shares and announced a capacity expansion plan.

HEG have proposed to buy back up to 13,63,636 Equity Shares  (Thirteen Lakh Sixty Three Thousand Six Hundred Thirty Six) of the Company, being 3.41% of the total paid up equity share capital, for an aggregate amount not exceeding Rs.750 Crores  (Rupees Seven Hundred Fifty Crores only ) at Rs. 5,500/- (Rupees Five Thousand Five Hundred only) per Equity Share.

The buyback is proposed to be made from the shareholders of the Company on a proportionate basis under the tender offer route using the stock exchange mechanism as notified by SEBI.

HEG also announced an expansion of its graphite electrode capacity to 100,000 TPA from 80,000 TPA. The additional 20,000 TPA will be at the cost of 1,200 crore rupees and is likely to be financed via internal accruals and debt, if required. The fresh capacity is likely to come on stream within 30-36 months. HEG is currently operating at a capacity of 85-90 percent.

Mr. Ravi Jhunjhunwala, Chairman & Managing Director & CEO, HEG Ltd said, “The global demand for graphite electrodes is robust as the steel industry worldwide shifts towards the more efficient Electric Arc Furnace route. With China shutting down excessively polluting steel Production by BOF/Induction Furnace routes, the EAF (Electric Arc Furnace) route which is very environment friendly is gaining market share resulting into a robust demand for our products. Domestically, with our steel industry consolidating and newer capacities also opting for EAF route, the demand for our product within India is also likely to grow in coming years.”