HEG stock fell 5% on Tuesday, extending its sharp decline since the company’s demerger took place on Sept. 1. The latest pressure on the stock comes alongside the resignation of Salil Bawa, President – Investor Relation and a member of the senior management personnel of HEG Advanced Materials.
Shares of HEG were trading at Rs 225.35, down 5%, on Sept. 15, compared with the previous close of Rs 237.20 apiece on NSE, after plunging 67.5% since Sept. 1.
HEG Demerger Takes Effect
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The demerger became effective on Sept. 1, with Sept. 7 fixed as the record date for shareholder entitlement. Under the scheme, eligible shareholders were to receive one fully paid-up equity share of the resulting company for every one equity share held in HEG.
Under the new structure, the graphite electrodes business moved into HEG Graphite Limited, which is proposed to be renamed HEG Limited and operate as a separately listed pure-play graphite electrodes company.
The existing listed entity retained the advanced materials, battery energy solutions and green power businesses and is proposed to be renamed HEG Advanced Materials Limited. The proposed name changes remain subject to necessary approvals.
ALSO READ: HEG Demerger: Record Date Fixed. Here’s What 1:1 Restructuring Means For Shareholders?
Investor Relations Head Resigns
On Sept. 14, HEG Advanced Materials disclosed that Salil Bawa had resigned as President – Investor Relation and from the company’s senior management personnel. Bawa submitted his resignation by email on Sept. 12, which was accepted by the company on Sept. 14.
In his resignation email, Bawa said it was a “painful and very difficult decision” and thanked the management for its mentorship, guidance, and the opportunity.
The company waived his remaining notice-period obligation, making the closing hours of Sept. 14 his last working day and effective date of separation.
HEG Stock Price Movement
On NSE, HEG shares were at Rs 729.90 on Sept. 1 and Rs 728.25 on Sept. 4.
The stock then fell to Rs 272.20 on Sept. 7, Rs 237.20 on Sept. 11, and finally today, trading at Rs 225.35 apiece around 11:29 am.
Currently, the stock is trading at a price-to-earnings multiple of 12.76 times, with a market cap of Rs 4,348.7 crore.
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