Tega Industries Limited has reported the final utilization of proceeds from its preferential issue, amounting to ₹17,13,28,58,764. The funds were primarily directed towards the acquisition of the ‘Molycop’ group. This report confirms that all funds raised have been deployed, signifying the successful completion of the capital allocation strategy outlined for the issue.
Tega Industries Confirms Full Utilization of Preferential Issue Proceeds
Tega Industries Limited has officially confirmed the complete utilization of funds raised through its recent preferential issue. The total amount raised and subsequently deployed was ₹17,13,28,58,764, as detailed in the Monitoring Agency Report for the quarter ended June 30, 2026.
Acquisition of Molycop Group
The primary object for which these funds were raised was the acquisition of the ‘Molycop’ group. The report indicates that the proceeds were utilized towards this strategic objective, marking a significant step in the company’s expansion strategy. This deployment signifies the successful culmination of the fundraising initiative for the acquisition.
Financial Allocation and Reporting
The Monitoring Agency Report, prepared by Crisil Ratings Limited, provides a detailed breakdown of the fund allocation. As per the report, the original estimated cost for the ‘Inorganic Growth’ object, which encompasses the Molycop acquisition, was up to ₹20,00,59,81,460. The actual utilization confirmed by the report stands at ₹17,13,28,58,764, fully accounting for the issued proceeds.
The report also clarifies that there were no unutilized proceeds remaining from the preferential issue as of June 30, 2026, with the balance in the issue account standing at Nil. This marks the final Monitoring Agency report for this specific preferential issue.
Transaction Details and Approvals
Further details highlight that the preferential issue proceeds, amounting to approximately USD 186.15 million (at an exchange rate of INR 92.04/USD), were initially invested in Tega MC Investment Pte. Ltd., a wholly-owned subsidiary. Pending the acquisition, these funds were placed in USD-denominated callable fixed deposits. Following redemption, these proceeds, along with internal accruals, were utilized for the Molycop acquisition. The transaction was facilitated through Tega Group’s SPV structure, with funds routed through various subsidiaries before deployment. The acquisition consideration ultimately amounted to USD 374.99 million. The transactions and related fund movements were approved by the respective Boards of Directors on May 28, 2026, and June 01, 2026.
Source: BSE
