Tega Industries to Acquire 77% Stake in Molycop; Expects Earnings Boost from FY27

Tega Industries, the Kolkata-based manufacturer of specialised consumable products for the mining sector, announced plans to acquire a 77% equity stake in Molycop, a leading supplier of grinding media used in mining operations for ore processing.

The total funding required for the deal stands at ₹3,300 crore. Of this, the company has secured ₹1,000 crore in corporate debt, while the balance ₹2,300 crore will be raised through equity.

Equity Funding Details

Mehul Mohanka, MD & Group CEO of Tega, told CNBC TV18 that ₹2,000 crore in equity participation has already been confirmed, with another ₹300 crore to be raised shortly via a preferential issue.

On investor appetite, Mohanka added that “a few institutions who missed out on the first one” have expressed interest in the upcoming round, though no names were disclosed.

Expected Financial Impact

Tega Industries expects the acquisition to be earnings accretive from FY27. The company projects incremental cash flow of $80–100 million from synergies with Molycop, which will be utilised to reduce debt.

Mohanka explained:

“We won’t like it to be anywhere higher than two times EBITDA at any given level. The idea would be over the next four years to pare it down to those levels.”

Market Outlook

The company remains upbeat about growth prospects in high chrome products, targeting 15–20% growth over the next three years.

Stock and Market Capitalisation

Tega Industries has a market capitalisation of ₹13,333.71 crore. Its shares have risen over 8% in the past year, reflecting steady investor confidence in the company’s expansion and growth plans.

Read More: Tega Industries to Raise ₹2000 Crore via Preferential

Conclusion

The planned acquisition of Molycop positions Tega Industries to strengthen its global presence in mining consumables. With a well-structured funding plan, projected synergies, and earnings accretion from FY27, the move underscores Tega’s long-term growth strategy while maintaining financial prudence.

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