HEG Limited, a prominent manufacturer of graphite electrodes, has made a strategic international investment by acquiring an 8.23% stake in GrafTech International Ltd., a NYSE-listed global leader in the production of high-quality graphite electrodes. The investment, valued at Rs 248.62 crore, was executed through secondary market transactions under the Overseas Portfolio Investment (OPI) scheme, part of the Foreign Exchange Management (Overseas Investment) Rules, 2022.

This acquisition positions HEG Limited to strengthen its global footprint in the graphite electrode sector, a crucial component in the production of electric arc furnace steel and other ferrous and non-ferrous metals. GrafTech, a global leader in the industry, boasts a competitive portfolio of low-cost, ultra-high power graphite electrode manufacturing facilities. These facilities are among the largest globally, enabling GrafTech to maintain a dominant presence in the steel production market.

The purchase was made for investment purposes, with the aim of diversifying HEG's portfolio in international markets. As part of the deal, HEG has filed the required information with the United States Securities and Exchange Commission under the Securities Exchange Act of 1934, showcasing compliance with international regulatory requirements.

GrafTech International Ltd., headquartered in the United States, is recognized for its competitive production capacities in ultra-high power graphite electrodes. These products are essential in the production of electric arc furnace steel, which is widely used across global industries. GrafTech operates several large-scale production facilities, which have significantly contributed to its success in the market.

In terms of financial performance, GrafTech has recorded impressive turnovers over the last three years, with USD 620.5 million for the fiscal year ended December 31, 2023, USD 1,281 million for 2022, and USD 1,345 million for 2021. These figures reflect the company's strong market position despite the fluctuating economic conditions in the global steel industry.

The investment made by HEG is not considered a related party transaction, ensuring that it was executed at arm’s length. Furthermore, there is no direct involvement of HEG's promoter group in this acquisition, highlighting the company's focus on expanding its global portfolio independently. The decision to invest in GrafTech aligns with HEG's strategy of expanding its presence in key international markets by partnering with companies that have a proven track record in innovative manufacturing technologies.

With a market capitalization of USD 416.61 million, GrafTech stands out as a global leader in the graphite electrode sector. The acquisition is expected to yield positive returns for HEG in the long term, given the consistent demand for graphite electrodes in electric arc furnace steel production.

As part of HEG's growth strategy, the company will continue to explore opportunities to enhance its global reach and expand its product offerings in international markets. The investment in GrafTech International not only opens new doors for HEG but also strengthens its position in the global graphite electrode manufacturing sector.

This acquisition not only marks a significant step for HEG in expanding its international investment portfolio but also places it at the forefront of global developments in the graphite electrode manufacturing industry.

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