Tega Industries

Tega Industries' board has approved raising funds up to Rs 4,000 crore through the issuance of equity shares and other securities.

Tega Industries has entered into a term sheet to acquire Molycop, a global grinding media supplier for the mining industry, for approximately $1.48 billion in partnership with Apollo Funds as minority investor. The transaction is expected to close by December 31, 2025 or early January 2026, subject to regulatory approvals. Tega will fund the acquisition through $248 million in equity instruments including preferential allotment and qualified institutional placements, plus $112 million in debt. The promoter family plans to infuse INR 150-200 crores through preferential allotment. Molycop serves over 400 mines in 40 countries and reported $173 million EBITDA. The acquisition includes a $120 million deferred contingent liability tied to reopening of select closed mines. Tega expects to achieve revenue and cost synergies of $20 million by year two, scaling to $30 million annually from year four, while expanding EBITDA margins from 11.5% to 15%. The combined entity will have 26 manufacturing sites and target a consolidated return on equity of 18%. Molycop's current debt of $1 billion will be reduced to $780 million from day one, with plans to achieve net debt to EBITDA ratio below 2.5x over four years.

Tega Industries' board has approved a funding plan worth up to Rs 4,000 crores. The funding will be raised through the issuance of new equity shares and other securities.