Tega Industries sees Molycop deal adding value from FY27

Tega Industries, a Kolkata-based manufacturer of specialised consumable products, said its planned acquisition of Molycop - a supplier of grinding media used in mining to crush ore and extract minerals like copper and gold - will be earnings accretive starting fiscal year 2026-27 (FY27).

“We need ₹3,300 crore in total to fund our 77% equity participation,” said Mehul Mohanka, MD & Group CEO of Tega. He explained that ₹1,000 crore of corporate debt is already lined up, while ₹2,300 crore will be raised through equity. Of this, ₹2,000 crore has confirmed participation, and another ₹300 crore will be raised soon through a preferential issue.

On investor interest, Mohanka said there are “a few institutions who missed out on the first one” and remain keen to participate in the next round. These are domestic investors, though names were not disclosed.

Also Read | Tega Industries' high-stakes Molycop buy targets global scale, fatter margins

Tega expects to generate $80–100 million of incremental cash flow from synergies with Molycop, which will be used to reduce debt. Mohanka noted, “We won’t like it to be anywhere higher than two times earnings before interest, taxes, depreciation, and amortisation (EBITDA) at any given level. The idea would be over the next four years to pare it down to those levels.”

On market dynamics, Mohanka said Tega remains positive on high chrome, targeting 15–20% growth over the next three years.

Also Read | Tega Industries board approves fund raise of up to ₹4,000 crore

Tega, with a market capitalisation of ₹13,333.71 crore, has seen its shares rise more than 8% over the past year.

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