HEG shares zoom over 9% in early trade today; here's why

Shares of HEG Limited zoomed over 9 per cent to hit a day's high of Rs 1,055 on BSE on Tuesday after the company incorporated a wholly-owned subsidiary company TACC Limited. TACC Limited would manufacture graphite anode for Lithium-ion cells. 

HEG said the company would make the plant in two phases, spending Rs 1000 crores in Phase 1 over the next 3 years, which would cater to 10-12 GWH of cell manufacturing capacity.

In Phase 2, HEG plans to double the capacity with another Rs. 1000 Crores approx, catering to a total of 20-22 MWH of cell manufacturing capacity.

"The company would be engaged in the production of graphite anodes for lithium-ion cells and other advanced materials as a part of the innovation wing. In order to support local industrial growth, the Indian government's PLI scheme mandates a 60% domestic value addition for cell production. Anode material produced by us will play an important role in meeting this requirement," HEG said.

"It will make a significant contribution to the sustainable and technological advancement of our nation and planet in the field of materials manufacturing for green energy technologies over the next decade," it added.

The company would subscribe 1 crore equity shares of the face value of Rs 10 each aggregating to Rs 10 crore. 

At 10:25 hours, the shares were trading 8.8 per cent higher at Rs 1050.45 on BSE. The market cap of the firm rose to Rs 4,054.26 crore.