Tega Industries has secured board approval for a borrowing facility of up to INR 1,500 Crores from a consortium of lenders. This capital is earmarked to facilitate the strategic acquisition of Molycop. Additionally, the company has greenlit an investment of up to USD 5 million into its wholly owned subsidiary, Tega MC Investment Pte. Ltd., to support ongoing operational requirements and future contingencies related to the acquisition.
Securing Acquisition Capital
On May 18, 2026, the Board of Directors of Tega Industries approved a significant debt-raising proposal to drive the company’s growth strategy. The company will enter into a Facility Agreement with Standard Chartered Bank and other financial institutions to raise up to INR 1,500 Crores. These funds are designated to support the acquisition of Molycop, a move previously initiated by the company in late 2025.
Strengthening Subsidiary Operations
As part of the same strategic roadmap, the company also approved an investment of up to USD 5,000,000 in its Singapore-based subsidiary, Tega MC Investment Pte. Ltd. This capital infusion will be executed via the subscription of Optionally Convertible Redeemable Preference Shares (OCRPS). This subsidiary, which has remained inactive regarding turnover, serves as a vital vehicle for the company to finalize investments in Tega MC JV Holdings Pte. Ltd.
Strategic Outlook
The infusion of funds into the subsidiary provides necessary financial agility to meet operational needs and contingencies as the Molycop acquisition progresses. The company has confirmed that the investment will be made on an arm’s length basis and is expected to be completed within 3 months. This development marks another milestone in Tega Industries’ broader plan to expand its presence in the mining grinding media industry.
Source: BSE
