Tega Industries , a leading manufacturer of specialized 'critical to operate' and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry, has successfully completed a significant fundraising round, attracting investments from prominent institutional and individual investors.

Major Fundraising Details

The company's board of directors approved the creation, issue, and offer of 100,33,090 equity shares through a preferential issue on a private placement basis. The shares, with a face value of Rs 10 each, were priced at Rs 1,994 per share (including a premium of Rs 1,984), aggregating to approximately Rs 2,000.60 crore.

Key Investors

The fundraising round saw participation from several notable investors:

Mukul Agarwal's Investment

Investor Mukul Mahavir Agarwal, founder of Param Capital Group, made a significant investment in Tega Industries during this fundraising round. Agarwal acquired 5,01,504 shares worth Rs 100 crore, demonstrating confidence in the company's growth prospects.

Promoter Participation

The company's promoters also participated in the fundraising:

• Nihal Fiscal Services Private Limited invested Rs 44 crore
• Mehul Mohanka and Madan Mohan Mohanka each invested Rs 30 crore
• Manju Mohanka invested Rs 20 crore

Several promoter group entities, including family trusts, also participated in the fundraising.

Tega Industries' Recent Performance

Tega Industries has shown strong performance in the stock market, with shares gaining over 200% in the past five years. However, on the day of this announcement, the stock traded 3.1% lower at Rs 2,044.00.

Strategic Acquisition

In a separate development, Tega Industries, in partnership with Apollo Global Management, has signed a binding agreement to acquire US-based Molycop for an enterprise value of $1.48 billion. Tega will hold approximately 77% of the deal structure, with Apollo holding the remaining 23%. This acquisition is priced at 8.6x FY25 EBITDA of $172 million, which is significantly lower than Tega's current 25x EBITDA multiple.

Conclusion

This successful fundraising round, coupled with the strategic acquisition of Molycop, positions Tega Industries for potential growth and expansion in the global mineral beneficiation and mining industry. The strong participation from institutional investors and the company's promoters reflects confidence in Tega's business model and future prospects.

Tega Industries , a leading manufacturer of specialized 'critical to operate' and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry, has announced a significant capital raise through a preferential issue. The company's Board of Directors has approved the creation and issuance of 100,33,090 equity shares to raise Rs 2,000.60 crores from 85 investors across various categories.

Key Details of the Preferential Issue

• Issue Price: Rs 1,994.00 per share (including a premium of Rs 1,984.00)
• Face Value: Rs 10.00 per share
• Total Shares: 100,33,090 equity shares
• Total Amount: Rs 2,000.60 crores

Diverse Investor Base

The preferential issue includes a wide range of investors, categorized as follows:

1. Promoters and Promoter Group: To receive equity worth Rs 154.00 crores
2. Qualified Institutional Buyers (QIBs):
   • Tata Mutual Fund: Rs 500.00 crores
   • Bandhan Mutual Fund: Rs 210.00 crores
   • Tata AIA Life Insurance: Rs 200.00 crores
   • Other notable QIBs: ICICI Prudential Mutual Fund, Tata AIG General Insurance, Mahindra Manulife Mutual Fund, Aditya Birla Sun Life AMC
3. Individual Investors
4. Body Corporates
5. Directors
6. Employees

Investor Allocation Highlights

Corporate Actions and Approvals

• The Board of Directors approved the preferential issue.
• An Extraordinary General Meeting (EGM) is scheduled at the Mini Auditorium, Science City, Kolkata.
• The EGM aims to seek shareholder approval for the preferential issue.

Regulatory Compliance

The preferential issue is being conducted in accordance with Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, and other applicable laws and regulations.

Implications and Outlook

This substantial capital raise of Rs 2,000.60 crores through a preferential issue demonstrates strong investor confidence in Tega Industries. The diverse mix of investors, including prominent mutual funds, insurance companies, and individual investors, suggests a positive outlook for the company's future prospects.

The funds raised are likely to strengthen Tega Industries' financial position, potentially supporting expansion plans, research and development initiatives, or debt reduction efforts. As the company continues to play a crucial role in the global mineral beneficiation and mining industry, this capital infusion could further enhance its market position and operational capabilities.

Shareholders and market observers will be keenly watching the upcoming EGM, where the preferential issue will be put to vote. The outcome of this meeting will be crucial in determining the next steps for Tega Industries' capital raising efforts and future growth strategies.