New Delhi, Sept. 7 -- The sharp move in HEG's share price on Monday does not represent the kind of wealth destruction the headline numbers might suggest. Shares of HEG Advanced Materials Ltd. opened at Rs.260 on September 7, the first day of trading after the demerger adjustment, but subsequently climbed 5% from their true adjusted value to hit a day's high of Rs.273.

The apparent plunge becomes clearer when viewed against Friday's closing price. The stock had ended the previous session at approximately Rs.728 before the demerger took effect. With September 7 designated as the official ex-date, the stock exchange recalibrated the trading price of the existing listed company to reflect the business being transferred into a separate entity...