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Quant Mutual Fund sold a significant block of 18.62 lakh shares in India’s leading graphite electrode manufacturer, for Rs. 420.86 crore through open market transactions on the BSE and NSE. 

Despite this significant sell-off, HEG Limited’s stock price rose 1.13 percent on BSE to Rs. 2,289.9 in the trading session of Monday. 

As of 11:20 AM on the following trading session, HEG’s shares were trading at Rs. 2,270.5, up by 0.3 percent from the previous close of Rs. 2,264.3, with a market capitalisation of Rs. 8,763 crore. 

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What’s the news: 

In two separate bulk deals on Friday, Quant Mutual Fund (MF) sold a total of nearly 18.62 lakh shares in Hindustan Electro Graphite (HEG) bringing the total deal value to Rs. 420.86 crore. 

According to the bulk deal data available with the stock exchanges, Quant MF offloaded 9.5 lakh equity shares in HEG on the BSE, whereas sold around 9.12 lakh shares on NSE, at an average price of Rs. 2,260, via open market transactions. 

As of March 2024, Quant MF held 14.11 lakh shares, representing a 3.66 percent stake, in HEG through its Quant Commodities Fund. 

Financials: 

In Q4 FY23-24, the company generated Rs. 547 crore in operating revenue, an 11.3 percent decline from the Rs. 616.8 crore recorded in Q4 FY22-23. The net profit also fell by around 63 percent reaching Rs. 33 crore, down from Rs. 89 crore in the same period of the previous fiscal year. 

On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA declined from Rs. 729 crores in FY22-23 to Rs. 526 crores in FY23-24, representing a decline of 27.8 percent. 

Shareholding Pattern: 

According to the latest shareholding pattern, the Promoters hold a 55.78 percent stake in the company, Foreign Institutional Investors (FII) hold a 6.86 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 26.97 percent and 10.39 percent stake in HEG, respectively. 

Stock Performance: 

The stock has delivered nearly positive returns of nearly 46.2 percent in one year, and around 23.2 percent returns in the last six months. So far in 2024, the shares of HEG Limited have given positive returns of about 17.4 percent. 

About the company: 

HEG Limited, a part of the LNJ Bhilwara group, is India’s leading graphite electrode manufacturer and has one of the largest integrated Graphite Electrode plants in the world, processing sophisticated UHP (Ultra High Power) Electrodes. 

The company is engaged in the manufacturing of UHP (Ultra High Power), and HP (High Power) electrodes used in Electric Arc Furnaces for steel production, with a 1 lakh TPA Graphite Electrode capacity and 76.5 MW Power generation capacity. 

Written by Shivani Singh 

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