Tega Industries’ Board approved a INR 15,00,00,00,000 (₹1,500 Crore) borrowing facility to finance the previously announced acquisition of Molycop. The investment strategy includes funding Tega HoldCo via subscription to OCRPS (₹3,517 Crore) and ordinary shares (₹1 Crore), alongside the incorporation of a new India WoS to further invest. The investments confirm the company’s commitment to the Proposed Acquisition, expected to close by March 31, 2026.
Financing Sanctioned for Strategic Acquisition
Tega Industries Limited announced that its Board of Directors, meeting today, February 12, 2026, approved key financial structuring elements related to the Proposed Acquisition of Molycop, first disclosed on November 29, 2025.
Borrowing Facility Approval
The Company secured approval to avail a borrowing facility of up to INR 15,00,00,00,000 (Rupees One Thousand Five Hundred Crores Only) from scheduled commercial banks, subject to final terms and conditions.
Investment Structure via Tega HoldCo
The primary purpose of this financing is to enable Tega HoldCo (a wholly-owned subsidiary incorporated in Singapore) to further subscribe to the ordinary shares of Tega MC JV Holdings Pte. Ltd. The investment into Tega HoldCo will occur in one or more tranches, totaling up to the following amounts (which exceed the borrowing facility, implying other funding sources):
- Subscription to Optionally Convertible Redeemable Preference Shares (OCRPS): Up to INR 35,17,00,00,000.
- Subscription to Ordinary Shares: Up to INR 1,00,00,000.
It was noted that the investment into Tega HoldCo constitutes a related party transaction, but it will be conducted on an arm’s length basis using internationally accepted pricing methodologies.
New India Subsidiary Incorporation
To support the acquisition financing, the Board also approved the incorporation of a new wholly-owned subsidiary in India (“India WoS”). The Company will invest up to INR 99,00,00,000 (Rupees Ninety-Nine Crores) in the India WoS via equity subscription to facilitate further investment into Tega HoldCo.
Acquisition and Timeline Context
The overall investment proceeds are earmarked to finance the Proposed Acquisition, which remains in the business of grinding media for the mining industry. As previously disclosed, the Proposed Acquisition is expected to close by March 31, 2026, with an outer timeline extension possibility of 12 months.
Further disclosures regarding finalized transaction documents for the borrowing facility will be made once finalized and executed.
Source: BSE
