Tega Industries Boards Approval for INR 15,000 Crores Facility and $5 Million Investment
Tega Industries Limited announced that its Board of Directors, at a meeting held on May 18, 2026, approved two major financial actions designed to facilitate its proposed expansion and acquisition activities. The company approved securing a substantial borrowing facility and making a strategic investment in its subsidiary, Tega MC Investment Pte. Ltd.The primary goal of the financing is to support the proposed acquisition of Molycop.
Approval of Borrowing Facility
The Board approved the proposal to secure a borrowing facility, referred to as the 'Facility', from Standard Chartered Bank and several other banks and financial institutions. The potential borrowing limit established by the facility agreement is up to INR 15,00,00,00,000 Crores (Rupees One Thousand Five Hundred Crores Only).The company stated that the Facility Agreement will enable the financing required for the proposed acquisition of Molycop, which was previously disclosed by the company on November 29, 2025. This funding is intended to enable Tega MC Investment Pte. Ltd. to further subscribe to the ordinary shares of Tega MC JV Holdings Pte. Ltd.
Strategic Investment in Subsidiary
In addition to securing the borrowing facility, Tega Industries Limited also approved the investment of up to USD 5,000,000 (United States Dollars Five Million) into Tega MC Investment Pte. Ltd.This investment will be made through the subscription of optionally convertible redeemable preference shares (OCRPS) in one or more tranches, as needed. The funds are intended to empower Tega MC Investment Pte. Ltd. to further subscribe to the ordinary shares of Tega MC JV Holdings Pte. Ltd., thereby meeting future operational expenses and contingencies.
The investment details regarding Tega MC Investment Pte. Ltd., a wholly owned subsidiary of the company in Singapore, are outlined below.
| Particulars | Details |
|---|---|
| Target Entity | Tega MC Investment Pte. Ltd. |
| Nature of Business | Wholly owned subsidiary incorporated in Singapore; has not generated any turnover till date. |
| Investment Scope | Up to USD 5,000,000 in OCRPS. |
| Transaction Basis | The investment constitutes a related party transaction, which will be executed on an arms' length basis based on internationally accepted pricing methodology. |
| Industry Focus | Grinding media for the mining industry and related products. |
| Use of Proceeds | To enable Tega HoldCo to subscribe to the ordinary shares of Tega MC JV Holdings Pte. Ltd. for future contingencies and operational expenses. Funds may also be invested in money market instruments, deposits in banks, or other permitted investments. |
| Timeline for Acquisition | Within 3 months from the date of investment. |
The proposed investment in the subsidiary is projected to fall within the ambit of a related party transaction, and the price per share will be determined based on internationally accepted pricing methodology.
TEGA Stock Price Movement
As of 1:55 PM, shares of Tega Industries Limited are shedding 1.99% in live trading, currently trading around ₹1553.8. The stock has traded a total volume of 27,916 shares throughout the day thus far.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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