Credit Rating
HEG Subsidiary TACC Receives IND A-/Stable Rating for ₹1,230 Crore Bank Loan Facilities
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HEG Limited informed the stock exchanges that its wholly owned subsidiary, TACC Limited, has received an IND A-/Stable long-term credit rating and IND A1 short-term rating from India Ratings & Research (Ind-Ra) for ₹1,230 crorebank loan facilities. The rating supports TACC’s ongoing lithium-ion battery synthetic graphite anode material project in Madhya Pradesh.
PRICE-SENSITIVE TRIGGER
Event: India Ratings & Research assigned an IND A-/Stable rating to the bank loan facilities of HEG’s wholly owned subsidiary, TACC Limited.
Type: Credit Rating
Impact: Positive
Immediate Effect: The assigned investment-grade rating enhances funding credibility for TACC’s greenfield synthetic graphite anode manufacturing project and reflects confidence in HEG’s financial support and strategic commitment.
Financials:
Financial Metrics:
- Rated Bank Loan Facilities: ₹1,230 crore
- Long-Term Rating: IND A-/Stable
- Short-Term Rating: IND A1
- Estimated Project Cost: ₹1,892.7 crore
- Debt-Equity Structure: 65:35
- Parent Equity Infused (as of March 2026): ₹160 crore
- Optional Convertible Debentures (OCDs): ₹400 crore
- Estimated Sponsor Funding Requirement: Approximately ₹662 crore
- Sponsor Funding Already Infused: About 88%
- Manufacturing Capacity: 20,000 TPA of lithium-ion battery-grade synthetic graphite anode material
- Expected Commercial Operations: April 2027
Highlight:
- India Ratings assigned an IND A-/Stable rating to ₹1,230 crore bank loan facilities backed by HEG’s financial guarantees and support for its strategic battery materials project.
What Happened ?
HEG Limited informed investors that India Ratings & Research (Ind-Ra) has assigned an IND A-/Stable credit rating to the bank loan facilities of its wholly owned subsidiary, TACC Limited.
TACC is developing a 20,000 tonnes per annum manufacturing facility for lithium-ion battery-grade synthetic graphite anode material at Dewas, Madhya Pradesh. The project forms a key component of HEG’s broader energy transition strategy through the proposed HEG Greentech platform.
According to Ind-Ra, the rating reflects strong parental support from HEG, favourable long-term demand for battery materials, comfortable project funding visibility, and structured debt protection mechanisms, while also recognizing execution and technology risks associated with a greenfield project.
key details
Rating Rationale:
- India Ratings assigned:
- Long-Term: IND A-/Stable
- Short-Term: IND A1
- Rating covers ₹1,230 crore bank loan facilities.
- Rating incorporates strong operational, legal and strategic linkage between TACC and HEG.
- HEG has fully guaranteed the subsidiary’s sanctioned term loan.
- Parent continues to provide equity, quasi-equity and financial support.
Note:
- The rating agency expects continued financial and operational support from HEG throughout project execution.
Project Overview:
- Greenfield manufacturing facility located at Sirsoda Industrial Area, Dewas (Madhya Pradesh).
- Capacity of 20,000 TPA synthetic graphite anode material.
- Product will cater to lithium-ion battery manufacturers.
- Commercial production targeted from April 2027.
- Project supports India’s battery manufacturing ecosystem and import substitution initiatives.
Key Business Drivers:
- Strong support from HEG and proposed HEG Greentech platform.
- Significant import substitution opportunity due to limited domestic production.
- Growing EV and battery energy storage demand.
- Potential export opportunity under the China Plus One strategy.
- Management is engaged with domestic and international customers for long-term offtake agreements.
- Project expected to become a strategic component of the LNJ Bhilwara Group’s energy transition platform.
Funding Structure:
- Total project cost estimated at ₹1,892.7 crore.
- Debt funding of ₹1,230 crore.
- Remaining funding through equity and optionally convertible debentures.
- One-year repayment moratorium after construction.
- Debt Service Reserve Account (DSRA) and sponsor guarantees provide additional protection to lenders.
Risk Analysis
Summary:
- While the rating reflects strong parent support and favourable industry demand, the project’s successful execution, technology stabilisation and commercial ramp-up remain critical to long-term performance.
Key Risks:
- Greenfield project execution risk.
- Technology stabilisation and production quality challenges.
- Raw material price volatility.
- Dependence on imported low-sulphur green petroleum coke.
- Working capital-intensive operations due to long production cycles.
- Capacity utilisation and customer qualification risk after commissioning.
Worst Case:
- Delays in project execution, cost overruns, slower customer approvals, or weaker-than-expected operational performance could affect project cash flows and potentially lead to negative rating action.
Risk Level: Medium
Company Commentary
- HEG informed exchanges that India Ratings has assigned IND A-/Stable to TACC’s bank loan facilities.
- The rating reflects the strategic importance of TACC within HEG’s energy transition plans.
- India Ratings expects HEG to continue providing financial and operational support throughout project implementation.
- Timely commissioning, successful stabilisation and efficient working capital management remain key rating monitorables.
Official Exchange Filing: HEG Limited
