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HEG Ltd plans to demerge into two entities: HEG Greentech and HEG Graphite, with completion expected by mid-2026. Emkay Global Financial Services has maintained a 'Buy' rating and set a target price of Rs 750.

The valuation for HEG Greentech is approximately Rs 7,500 crore, equating to Rs 226 per share, while HEG Graphite is valued at Rs 10,000 crore, or Rs 518 per share. Shareholders will receive shares in HEG Graphite Ltd on a one-to-one basis.

Following the demerger, HEG Ltd will merge with Bhilwara Energy Ltd, increasing the outstanding shares by 13.7 crore to about 33 crore. HEG Greentech aims for a battery anode production capacity of 60,000 tonnes by FY32, with ongoing construction for 20,000 tonnes.

Annual cash flows from hydropower assets are projected at Rs 300 crore, supporting future growth. Emkay estimates a combined Ebitda of approximately Rs 810 crore for HEG Greentech, with additional potential from battery energy storage systems.