Tega Industries Limited has provided an update on its preferential issue of equity shares. The company stated that the proceeds will primarily be used for repaying existing borrowings (₹75.40 crores) and bolstering working capital requirements (₹20.00 crores). Additionally, Tega Industries clarified the determination of the preferential issue price, which was set at ₹1,994/- per share, significantly above the minimum floor price derived from regulatory guidelines and valuation reports.
Fund Utilization for Preferential Issue
Tega Industries Limited has issued a clarification regarding the utilization of funds raised from its recent preferential issue of equity shares. The company detailed that the proceeds will be allocated towards specific objectives to strengthen its financial position and operational capabilities. A significant portion, amounting to ₹75.40 crores, will be directed towards the part or full repayment of existing borrowings, including interest and finance costs. The remaining ₹20.00 crores will be utilized to meet working capital requirements.
Timeline for Fund Utilization
The utilization of these funds is planned within defined timelines. The repayment of existing borrowings is expected to be completed within 4 months of receiving the issue proceeds. Working capital requirements are slated to be addressed within March 31, 2027. The total amount raised and allocated for these purposes amounts to ₹95.40 crores.
Clarification on Issue Pricing
Further, Tega Industries addressed the basis for determining the price of the preferential issue, as outlined in Point VIII of its Postal Ballot Notice dated August 22, 2026. The company highlighted that the Equity Shares are frequently traded on both BSE and NSE. The minimum floor price was determined in accordance with SEBI ICDR Regulations, considering the higher of:
- The 90-trading day volume-weighted average price on NSE preceding the relevant date, which was ₹1,705.11/- per share.
- The 10-trading day volume-weighted average price on NSE preceding the relevant date, which was ₹1,698.26/- per share.
- The fair value determined by an independent registered valuer, Mr. Neeraj Kumar Sureka, which was ₹1,635.94/- per equity share.
Consequently, the minimum floor price was established at ₹1,705.11/-. However, the proposed allottee has agreed to subscribe to the equity shares at an issue price of ₹1,994/- per share, which includes a premium of ₹1,984/-. This issue price is consistent with the company’s prior preferential issue in October 2025 and exceeds the minimum floor price and valuation report’s determined value.
All other contents of the Postal Ballot Notice remain unchanged. This information is also available on the company’s website.
Source: BSE
