Tega Industries Limited’s Board has approved a comprehensive financing structure for its previously announced acquisition. This includes availing a major borrowing facility of INR 1,500 Crores. Furthermore, the Board sanctioned an investment of up to INR 36,17 Crores into its wholly-owned subsidiary, Tega HoldCo, via preference shares and ordinary shares, alongside establishing a new Indian subsidiary to channel further investment.
Board Sanctions Key Financing for Acquisition
Tega Industries Limited announced that its Board of Directors, following deliberations on February 12, 2026, has approved critical steps related to the Proposed Acquisition previously disclosed on November 29, 2025.
Borrowing Facility Approval
The company approved the availing of a substantial borrowing facility, designated as the “Facility,” up to a maximum of INR 15,00,00,00,000 (Rupees One Thousand Five Hundred Crores Only) from scheduled commercial banks, subject to finalization of terms with the Lenders.
Investment into Subsidiary (Tega HoldCo)
The Board also approved investments in tranches into Tega HoldCo, the entity established in Singapore to facilitate the acquisition of Molycop. This investment totals up to:
- INR 35,17,00,00,000 (Rupees Three Thousand Five Hundred Seventeen Crores) by subscribing to Optionally Convertible Redeemable Preference Shares (OCRPS).
- INR 1,00,00,000 (Rupees One Crore) by subscribing to ordinary shares.
The consideration for the investment in Tega HoldCo will be in cash, utilizing internationally accepted pricing methodology.
Creation of New Indian Subsidiary
To further support the funding mechanism, the Board approved the incorporation of a new wholly owned subsidiary in India (India WoS). The Company will invest up to INR 99,00,00,000 (Indian Rupees Ninety-Nine Crores) in this India WoS through equity subscriptions. The funds injected into the India WoS are intended to be routed for further investment into Tega HoldCo, enabling it to subscribe to ordinary shares of Tega MC JV Holdings Pte. Ltd. per the SSA terms.
Target Entity Background
The direct target for investment, Tega MC Investment Pte. Ltd. (Tega HoldCo), was incorporated on November 18, 2025, in Singapore. As a newly incorporated, wholly owned subsidiary, it has not yet commenced business operations and has generated no turnover to date. The underlying business pertains to grinding media for the mining industry.
Execution Timeline
As previously stated, the Proposed Acquisition is currently expected to close by March 31, 2026, with an outer timeline contingency of 12 months provided certain conditions are not met.
India WoS Details
The investment into the India WoS (a cash consideration) involves subscribing to up to 9,90,00,000 equity shares with a face value of INR 10 each. Upon subscription, the Company shall hold 100% of the paid-up equity share capital of the India WoS. The India WoS’s primary activities will include Management Consultancy and facilitating the investment into Tega HoldCo.
Source: BSE
