Tega Industries secures Rs 1,500 crore facility for Molycop acquisition

Yash Agarwal — Mon, 18 May 2026 07:51:51 +0000

Tega Industries has announced the approval of a borrowing facility agreement amounting to ₹1,500 crore from Standard Chartered Bank and other financial institutions. This facility will support the company’s proposed acquisition of Molycop, as previously disclosed in November 2025.

The board of directors, during their meeting on May 18, 2026, sanctioned the execution of the facility agreement. The financial arrangement will be utilised to enable Tega MC Investment Pte. Ltd., a wholly owned subsidiary of Tega Industries, to further invest in Tega MC JV Holdings Pte. Ltd. The terms and conditions of the facility will be detailed in the agreement, and Tega Industries has committed to making necessary disclosures as per SEBI regulations.

In addition to the borrowing facility, Tega Industries plans to invest up to USD 5 million in Tega MC Investment Pte. Ltd. through optionally convertible redeemable preference shares. This investment aims to support the subsidiary’s operational expenses and future contingencies. The investment will be conducted in one or more tranches, and the pricing will follow internationally accepted methodologies.

Tega MC Investment Pte. Ltd., incorporated in Singapore, is a recent addition to Tega Industries’ portfolio and has not yet generated any turnover. The subsidiary is involved in the grinding media sector for the mining industry, aligning with Tega Industries’ strategic expansion plans.

The board meeting, which began at 12:10 PM and concluded at 1:10 PM, also confirmed that the proposed investment falls within the ambit of a related party transaction, conducted on an arm’s length basis.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Molycop | Business Upturn

Tega Industries secures Rs 1,500 crore facility for Molycop acquisition